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Savers need to move quickly to snap up the top rates
Cash savings rates continue to rise but as deals are changing at pace, savers may need to go quick to secure the top paying accounts.
Competition in the cash savings market is rife, with fixed rate bonds reaching levels not seen in years as challenger banks compete to entice customers and their deposits.
However, inflation remains stubbornly high at 10.1% in September, and as has been the case over the last few months, no standard savings accounts can outpace this figure.
But while inflation has an eroding effect on cash as it reduces spending power, savers should not become apathetic to switching to a better rate, according to Moneyfacts.
Move fast to grab a top deal
Its finance expert Rachel Springall added that as deals are changing within a short timeframe, she urges savers to grab the top rates while they can.
Springall said: “Top fixed bonds are reaching heights not seen for many years as challenger banks compete to entice savings deposits, but this has also seen deals change within a short time frame, so swift movement is wise to grab a top rate savings deal.
“Those savers who are about to see their one-year bond mature may wish to note the best deal today pays 4.75% (JN Bank), which is 3.24% more than last year’s top deal, of 1.51% (Gatehouse Bank) as an expected profit rate.
“One-year fixed ISAs are also on the up, but still pay less than fixed bonds, so as interest rates continue to rise, it’s imperative savers consider both their ISA allowance and their Personal Savings Allowance along with comparing interest rates.”
‘Reconsider loyalty if you’re getting a rough deal’
Savers should also be mindful of the cost-of-living crisis, so some may prefer to keep cash in an instant or easy access account. These rates are also climbing.
Springall added: “It is largely expected that the Bank of England will increase the base rate in the coming weeks, but savers would be wise to review their existing accounts now and switch to take advantage of the latest top rate deals.
“As we have seen time and time again, there is no guarantee that savers will see much benefit from a base rate rise, so it’s important they reconsider their loyalty if they are getting a raw deal.”
