Savings and ISA News | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

cash stack icon

Savings News

Top Savings News

news icon
Savings rate rises continue to lag behind inflation
Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 15/09/2021

Savings rates continue to improve, however, due to a dramatic rise to inflation, not one standard savings account can beat its eroding power. 

The Consumer Price Index (CPI) rose to 3.2% during August 2021 up from 2.0% in July 2021. This is the highest level seen since records started in 1997. There remains no single savings account that can outpace inflation. The highest cash savings rate available right now is from Atom Bank at 1.86% for a five year fixed rate bond. This is an improvement compared to 18 August 2021 when the top rate was 1.72% for a five year fixed deal. But, while rates are increasing they are lagging far behind the pace of inflation and even the best rates just prior to the start of the pandemic would not have kept pace. On 18 September 2019 the top return in the market over five-years was 2.45%. 

Those needing to save into a cash ISA face even worse news with rates here only reaching 1.50% for a five year fixed rate cash ISA. This means that savers should only use cash ISAs if they are likely to exceed their personal savings allowance and as a result could face paying tax on their interest income.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:
“Savings rates have improved vastly since last month which will be great news for consumers looking for a competitive return on their cash. However, inflation overshadows the positive shift, as the latest figure of 3.2% is the largest rise month-on-month since records began and not one standard savings account can beat its eroding power. There is an expectation for inflation to stay above the Bank of England target of 2% for some time yet, but it is vital savers do not become apathetic as they could miss out on some of the best rates we have seen all year.
“Locking cash away for longer may not be feasible for some, indeed consumers may be reluctant to invest longer than a year at most due to the impact of the Coronavirus pandemic on their financial health. However, savings providers are keen to draw in business and fixed rates have been rising substantially in recent months. Savers can now get a one-year bond paying 1.50% (Atom Bank) but a year ago savers would have had to tie their money up for five years for a rate nearest to this return. Those who are averse to a fixed account will find easy access rates have improved since last month, but there is much more room for improvement as a year ago, savers could get a rate of 1.20% (Skipton Building Society).
“ISA’s are still worth considering for any saver yet to use their tax-free allowance, due to their longer-term advantages, and rates are thankfully rising in this arena. However, there remains a notable gap between fixed-rate ISAs and fixed-rate bonds. It would therefore be sensible for savers to compare the rates carefully and consider their Personal Savings Allowance. One of the savings providers to cause a stir in the fixed ISA market recently was Secure Trust Bank, it now leads both the two- and three-year fixed ISA sector with rates at 1.15% and 1.25% respectively.
“Keeping abreast of the changing savings market is vital, as savers could stand to miss out if a deal has a short shelf life or becomes oversubscribed quickly, so signing up to rate alerts and newsletters is wise. Due to the refreshing change to the market, it would not be too surprising if some savers decide to wait a little longer in the weeks ahead expecting more improvements to surface.”
Read More
news icon
The best savings rates this week 10.09.21

At the beginning of this week Al Rayan Bank increased its fixed bond rates, resulting in it now topping both the three and two year fixed rate bond charts. Meanwhile, Oxbury Bank launched a 120 day notice account this week, which now pays the top rate in our notice account chart. Savers looking for an easy access savings account will find that a rate increase sees Buckinghamshire Building Society now offers the second-best rate along with Aldermore, as well as this during the week Leeds Building Society increased the rate on its Limited Issue Online Access Account (Issue 23), which now pays a competitive rate of 0.55% AER.

Read More
news icon
The best ISA rates this week 09.09.21

Savers looking for a fixed rate ISA will be pleased to see that rate increases from Secure Trust Bank has resulted in new higher rates topping the one, two and three year fixed rate ISA charts this week. For those looking for an easy access ISA, although the best three rates have remained the same this week, a rate rise by Leeds Building Society has resulted in it now offering the joint second-best rate in this chart.

Below we’ve highlighted the top rates currently available in our comparison charts, but savers should note that these are the best rates available at 12pm on Thursday 9 September 2021 and, although correct at the time of publishing, providers may reduce or withdraw rates at any time. As well as this, the rates highlighted are only those available to new customers.

Read More
news icon
Where savers can get the best returns on their lockdown savings

Consecutive lockdowns to help manage the pandemic has resulted in many consumers having extra disposable incomes that they could stash away into savings funds. In fact, the latest Bank of England data shows that between April and June 2021 the average deposits into banks and building societies was £8.8 billion, whereas the average inflow in the year to February 2020 was just £4.7 billion.

Although consumers have been depositing more into savings accounts over the last 18 months, unfortunately savings rates have plummeted during this time. Back in March 2020, the Bank of England cut base rate to a historic low of 0.1%, where it has remained since, as well as launching a new funding for lending scheme the following month – both of which has contributed to saving rates remaining low.

These last 18 months has seen saving rates fall to their lowest levels on record, with average easy access savings rates falling to its lowest rate of 0.16% during March to June 2021 and the average rate on one year fixed bonds falling to a low of 0.42% in April 2021. Meanwhile, longer-term fixed rate bonds fell to their lowest rate between March and April 2021 when the average rate stood at just 0.65%.

The good news for savers is that over the last few months saving rates have started to see small improvements. It is hoped that with the possibility of the Bank of England raising base rate early next year, along with challenger banks becoming more competitive, these small improvements are the first signs of a savings recovery.

For savers wondering where to put their money now, here we’ve highlighted the accounts that offer the best returns for savers.

Read More
news icon
The best savings rates this week 03.09.21

The best rate for a one-year fixed rate bond increased this week from 1.41% to 1.50% as SmartSave exited the market and Atom Bank increased its rates. Atom Bank also has the very best fixed rate bonds for two and five year terms following its rate increases.


The easy access and notice charts saw a couple of changes this week with Tesco Bank entering the easy access charts and Charter Savings Bank and DF Capital now top of our best notice account rates.

Read More

Recent News

news icon
Best savings, mortgage and credit card deals 02.09.21

2nd September 2021

Every week we highlight some of the best personal finance deals currently available. These deals are selected based on their competitive rates and features that benefit consumers

Every week we highlight some of the best personal finance deals currently available

Read More
news icon
The best ISA rates this week 02.09.21

2nd September 2021

As we move into September a number of banks and building societies have increased the rates on their ISAs

As we move into September a number of banks and building societies have increased the rates on their ISAs

Read More
news icon
Premium bond winners for September 2021 revealed

1st September 2021

The latest £1 million premium bond jackpot winners have been revealed this morning, along with millions more scooping prizes ranging from £100,000 to £25

The latest £1 million premium bond jackpot winners have been revealed this morning, along with millions more scooping prizes ranging from £100,000 to £25

Read More
news icon
The best savings rates this week 27.08.21

27th August 2021

The top fixed bond rates continued to rise this week with Zopa increasing the rates across its fixed rate bonds, resulting it topping this chart overall

The top fixed bond rates continued to rise this week with Zopa increasing the rates across its fixed rate bonds, resulting it topping this chart overall

Read More

Search News

(showing 1 to 4 of 495) (showing 1 to 3 of 495) (showing 1 to 4 of 495)

Most Popular Savings News

news icon
The best savings rates this week 10.09.21

10th September 2021

At the beginning of this week Al Rayan Bank increased its fixed bond rates, resulting in it now topping both the three and two year fixed rate bond charts

At the beginning of this week Al Rayan Bank increased its fixed bond rates, resulting in it now topping both the three and two year fixed rate bond charts

Read More
news icon
The best ISA rates this week 09.09.21

9th September 2021

Savers looking for a fixed rate ISA will be pleased to see that rate increases from Secure Trust Bank has resulted in new higher rates topping the one, two and three year fixed rate ISA charts this week

Savers looking for a fixed rate ISA will be pleased to see that rate increases from Secure Trust Bank has resulted in new higher rates topping the one, two and three year fixed rate ISA charts this week

Read More
news icon
Where savers can get the best returns on their lockdown savings

8th September 2021

Consecutive lockdowns to help manage the pandemic has resulted in many consumers having extra disposable incomes that they could stash away into savings funds

Consecutive lockdowns to help manage the pandemic has resulted in many consumers having extra disposable incomes that they could stash away into savings funds

Read More
news icon
Are the new Green Savings Bonds worth waiting for?

7th July 2021

With details about the National Savings and Investments’ (NS&I) Green Saving Bonds being revealed last week, we’ve looked at whether these bonds are a good option for savers and the alternatives already available on the market

With details about the National Savings and Investments’ (NS&I) Green Saving Bonds being revealed last week

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Send me Weekend Moneyfacts, Savers Friend, The Business Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy