You are here: Home - Saving & Banking - News -

Savers see greater choice of products and higher rates

0
Written by: Paloma Kubiak
17/07/2017
The number of savings products available on the market has increased and the rates on offer are edging higher.

There are 1,700 savings products on the market in July, marking its highest point since January 2016.

Live products have jumped by 262 from the all-time lows seen in November 2016. In January this year, the number stood at 1,495, according to Moneyfacts data.

The data research firm said that alongside the increase, savings rates are also enjoying an upwards trend.

In the fixed rate market, challenger banks are competing heavily. Of those challengers that have been in the market for a while, their older fixed rates are starting to mature. As a result, savers coming to the end of their deals may be tempted to look elsewhere but the challengers are opting to launch new deals or up their rates to stay competitive.

Charlotte Nelson, finance expert at Moneyfacts, said despite the significant increase in choice, savers looking for worthwhile deals still have to contend with rising inflation and little difference between the interest rates on offer from the best deals.

“Until something forces the main banks to join the fray again, this feeling is likely to remain. With the Bank of England asking banks to increase their capital buffers, this may act as the catalyst for the main banks to start offering savers better deals. However, as banks have some time to obtain the additional capital, it is unlikely that savers will see a dramatic increase in rates anytime soon.

“The green shoots in the savings market are unlikely to stop the fall in household savings as those who are still able to save find it near-impossible to obtain accounts that beat the rising inflation rate. However, savers sitting on accounts paying next to nothing would be wise to take advantage of the extra choice and shop around to find a better deal.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
uk shares
Election factor hits investor sentiment

Investor sentiment has fallen to its lowest level this year, dropping 3.7% in July. However, overall sentiment is still higher...

Close