Banks and building societies are continuing to add ever growing bonuses to their savings account as a temporary measure to increase the rates offered to savers, Moneyfacts data has revealed.
Over the last two years, the number of variable rate savings accounts that include a bonus has increased from 10.8 per cent to 16.4 per cent, while the size of the bonus has almost doubled from 0.64 per cent to 1.10 per cent.
The largest bonus available to savers has also increased significantly. Two years ago, one per cent bonus was the best deal in town; that grew to 1.55 per cent 12 months ago, 2.17 per cent in January. Today, the largest bonus is 2.65 per cent.
"The savings market continues to be very competitive at present, with banks and building societies doing battle to attract savers' money," said Michelle Slade, spokesperson for Moneyfacts.co.uk.
"Providers are continuing to offer ever larger bonuses as a way of temporarily boosting the rates on offer.
"The size of the bonuses continue to increase, with in many instances the vast majority of the rate being made up of a bonus. While this can provide short term gains, if savers neglect to move their money when the bonus ends they may find themselves left with an account paying an uncompetitive rate."
Consumers can use Moneyfacts' impartial comparison tables to find a bonus account to suit them today.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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