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Savings account numbers rise to all time high

Savings account numbers rise to all time high

Category: Savings

Updated: 10/06/2011
First Published: 10/06/2011

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 It is now over 6 months old so the content may be out of date.

The number of savings accounts has risen to an all time high, research by Moneyfacts.co.uk has found.

The number of savings accounts available to personal, business and offshore savers currently stands at 2,385, the highest level since Moneyfacts.co.uk started recording figures in 1988, when there were only 203 savings products on the market.

There has been a steady increase in the number of savings products in recent years.

The number has risen from 2,219 one year ago, 2,197 three years ago and 2,088 five years ago. As well as rising numbers, rates have also increased, with averages outstripping those seen when interest rates were far higher.

"Since the start of the credit crisis savers' deposits have become increasingly in demand amongst providers looking to use in-house sources of funding for lending rather than entering the money markets," said Michelle Slade, spokesperson for Moneyfacts.co.uk

"This increased competition for savers' deposits has led providers to branch out into new markets, particularly the longer term fixed rate market. Providers continue to pay a premium to attract savers' deposits.

"So much so, that the average four and five year fixed rate bonds are paying higher rates than those on offer at the start of December 2008 when bank base rate was 3.00%.

"Going forward, savings providers will not want to maintain the wide margin between the bank base rate and the rate they are paying to savers."

For the cream of the almost 2,400 savings accounts that are currently available, check the Moneyfacts.co.uk Best Buy tables.

Whether you're looking for a short or long term account, a fixed or variable, deal, or a cash ISA to shelter your interest from the taxman, we should have the perfect product for you.

Compare savings accounts


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 Any products featured may be withdrawn by their provider or changed at any time.

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