Average saving rates across all charts except notice ISAs have increased month-on-month, with challenger banks boosting competition within the savings market.
Figures due to be released in the Moneyfacts UK Savings Trends Treasury Report show that that the average rate on easy access savings accounts has increased by 0.01% month-on-month, up from 0.16% in June to 0.17% in July. Meanwhile, the average rate on one year fixed rate bonds has risen by 0.04% and the average rate on longer-term bonds has risen by 0.05%, up from 0.48% to 0.52% and 0.72% to 0.77% respectively.
Although some high street banks and building societies are offering highly competitive rates, for example Leeds Building Society offering a market-leading easy access savings account rate of 0.50% on its Limited Issue Online Access Account (Issue 20), savers will likely have to look to challenger bank for the top savings rates.
“The rise of challenger banks in recent years has breathed life into the savings market and there are now more savings providers than ever before on our records,” explained Rachel Springall, finance expert at Moneyfacts.co.uk. “The injection of much-desired competition has been noticed even more recently, as challenger banks make their presence known in the top rate tables. In the past few weeks alone, there have been several rate increases to fixed bonds, many by challenger banks. However, the shelf life on a fixed rate bond fell to 53 days, showing signs that a good deal may not last too long as brands continue to react to market movements.”