Savings News

Last updated: 26th May 2022

The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market. These can range from mortgages to savings accounts. This week, I have analysed the following deals, along with their perks, of note:

Last updated: 20th May 2022 12:00pm

Top easy access rates remain unchanged while best fixed rate bonds increase rates.

Fixed rate bonds have seen the largest rise in over a decade according to the latest data recorded in our UK Savings Trends Treasury Report. In fact, the average one-year bond rate rose month-on-month to 1.24% and stands at its highest level in over two years. 

Added to this, the top rates in the fixed rate bond market this week saw a rise too with the one, two, three, and five year top rates all replaced by better offers. In the easy access market change was less volatile, while OakNorth Bank replaced one of its top rates in the notice market for a savings account only offered through the Raisin platform.

Inflation has now eaten away at savings accounts for an entire year, despite notable uplifts to savings rates across the market. Today the Consumer Price Index (CPI) rose to 9.0% during April, from 7.0% in March.

In May 2021, there were no deals that could beat 1.5% (April 2021 CPI) and in May 2020, there were 376 deals (24 easy access, 49 notice accounts, 24 variable rate ISAs, 70 fixed rate ISAs and 209 fixed rate bonds) that could beat 0.8% (April 2020 CPI)*.

Moneyfacts UK Savings Trends Treasury Report data shows average fixed rates have seen their biggest monthly rises in over a decade. The average one-year fixed bond, longer-term fixed bond, and longer-term fixed ISA stand at their highest levels since 2019.

The average one-year bond rate rose month-on-month to 1.24% and stands at its highest level in over two years. This is the biggest month-on-month rise since April 2011 and is the highest average rate recorded since November 2019 (1.28%). The average long-term fixed bond rate rose to 1.68%, the biggest rise since August 2009 and stands at its highest since August 2019 (1.72%).

Meanwhile, product choice overall has grown by 279 deals year-on-year, to 1,685 savings deals (including ISAs), the highest count in choice since March 2020, and is far beyond the record low count of 1,340 in April 2021.