News for savers over the last few years has been dreary to say the least, but it finally seems as though things are starting to look up.
Savers have been making hay while inflation has been at rock bottom, and the trend looks set to continue with the announcement that the Consumer Prices Index (CPI) – a key measure of inflation – rose by only 0.1% in July, up from 0.0% in the previous month. This means that savings are largely safe from the erosive effects of inflation, which can only be good news for hard-pressed savers!
What's more, this means that most of the 888 savings accounts currently available on the market can beat inflation, and of these, 706 are without restrictive criteria. This includes 154 no notice accounts, 81 notice deals, 265 fixed rate bonds and 206 cash ISAs, so there is plenty to choose from!
Moneyfacts' research has also found that things are starting to pick up in terms of the rates offered by savings providers. Since the beginning of July this year, Moneyfacts has recorded 172 savings rate rises, with some being as high as 0.74%. This completely dwarfs the 73 rate reductions that took place over the same period, which suggests that life is slowly coming back into the sector.
"The healthy injection of rate rises into the savings market is largely due to the competitive nature of the challenger banks, but although mainstream providers may still be hesitant to hike rates, it's still encouraging to finally see some signs of life," commented Rachel Springall, finance expert at Moneyfacts. So, isn't it time to check out the market and see what returns you could secure?
"Savvy savers used to be fixated on beating inflation, but today it is having little influence," added Rachel. "Today, savers have a variety of decent deals to choose from, and while many face the choice of locking money away for the highest returns, respectable interest can still be earned from shorter-term fixed rate deals or even easy access accounts that sit at the top end of the market."
So, it's time to get shopping! Comparing different accounts and competitors in the market is the best way to find a great deal. Start your search by taking a look at our best buy deals and see what returns you can get!
Check out the top six fixed rate cash ISAs
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 Any products featured may be withdrawn by their provider or changed at any time.
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