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WARNING: Top savings deals vanishing from sight

WARNING: Top savings deals vanishing from sight

Category: Savings

Updated: 01/08/2016
First Published: 01/08/2016

Savers have had it rough over the years and with endless cuts decimating the market, some potential investors may not realise that a few best buy savings deals are in fact disappearing altogether.

Indeed, our latest research can reveal that, in July, 13 best buy deals were withdrawn entirely from the market, and have yet to be replaced. Not only that, but some of the best deals have only been available for a week before being closed to new customers, and some even less, such as National Counties BS which withdrew its best buy easy access rate of 1.30% after just three days, and Secure Trust Bank which withdrew its two-year fixed bond after only four.

This is a clear sign that providers cannot cope with the onslaught of new savers looking for a home for their cash – they simply don't want or need so many deposits, and to avoid being inundated with excess cash, they're closing the accounts instead.

The table below highlights the 13 best buy accounts that have been withdrawn in the last month, all of which having yet to be replaced with competitive equivalents:

Withdrawn accounts that paid best buy rates in each respective sector

Provider Account
Rate Best buy
position
FirstSave 7 Year Fixed Bond 2.55% Best Rate
Secure Trust Bank 2 Year Fixed Bond 2.20% Best Rate
Raphaels Bank 60 Month Fixed Bond 2.20% Top 10
Buckinghamshire BS 5 Year Fixed Bond 2.20% Top 10
Buckinghamshire BS 5 Year Fixed ISA 2.20% Top 10
SAGA 3 Year Fixed ISA 1.80% Best Rate
Investec Bank 2 Year Variable Bond 1.70% Top 10
Secure Trust Bank 120 Day Notice 1.55% Best Rate
Virgin Money 2 Year Fixed ISA 1.40% Top 10
Beverley BS 30 Day Notice ISA 1.30% Best Rate
National Counties BS Easy Access 1.30% Top 10
Virgin Money 1 Year Fixed Bond 1.30% Top 10
Nottingham BS Easy Access 1.21% Top 10
Source: Moneyfacts.co.uk
Best buys shown are for new customers
Compiled 01/08/2016

"Savers are facing never-ending cuts to multiple types of accounts, which results in many investors jumping ship from one provider to another to get a more competitive return," said Rachel Springall, finance expert at Moneyfacts. "However, despite the will to switch, this practice won't save them if they are not quick to grab the best rates, as providers are resorting to pulling the deals out of the market altogether.

"Decent savings deals are facing slaughter: repetitive cuts are just not practical for providers to continue with, so the only option left for them to limit the amount of cash coming in is to withdraw the best deals entirely and not replace them.

"Small providers that would have never envisaged being market-leaders are slowly finding themselves near the top of the market, due to other providers falling out of the best buys. This has resulted in a vicious cycle of rate reductions so that they can move to a more mid-market position, or indeed they're withdrawing the deal entirely due to countless applicants.

"Withdrawing the best buys is only going to cause panic among savers struggling to get a decent return, so the process will continue; as a result, it is unlikely we're going to see an end to this mass exit from the best buys anytime soon."

The message to take from all this? Act fast! If you spot a market-leading deal and are considering moving your savings pot (or perhaps starting a new one), don't hang around – chances are, it won't be available for long, so get in there quickly to nab the best rates and secure the best returns possible.

What next?

Compare the best savings deals

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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