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Savers have to sprint for best deals

Savers have to sprint for best deals

Category: Savings

Updated: 01/08/2011
First Published: 26/07/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers have been warned that they must act quickly if they are to secure the best accounts in the savings market.

Figures from Moneyfacts.co.uk show that the average length of time a fixed rate savings account stays on the market has fallen to just 37 days – the lowest level since December 2008.

Since base rate has been at its all time low of 0.50%, the average length of time bonds have hung around for has typically been over 100 days, peaking at 133 days in October 2009.

It marks a dramatic fall from just six months ago, when the average shelf life of a bond was 131 days.

In recent months average fixed bond rates have also started to fall, particularly on longer term bonds.

The average five year bond has fallen from 4.34% at the start of May to 4.03% today.

"In recent months there has been a downward trend for bond rates, resulting in savers rushing to secure the best deals," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"Once a few providers start to cut rates, others will follow suit as no provider wants to pay more than they need to, to attract savers' money.

"Money market rates are now notably lower than they were a few months ago and it is likely that providers are using this to raise money for their lending rather than through their savings book.

"Savers are still actively trying to find the best deal, so when market leading deals are launched they are oversubscribed extremely quickly.

"Only last week a market-leading deal was launched and withdrawn by Yorkshire Building Society in just three days.

"If savers want to secure top rates they need to act fast because if they wait too long it's likely the deal will be gone."

Find high rate savings accounts here.

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 Any products featured may be withdrawn by their provider or changed at any time.

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