Despite savers not getting the rush of activity in the market they may have wanted following the latest base rate rise, all averages have gone up for the first time in more than seven years. This once again illustrates the importance of keeping an eye on the Best Buys.
Data from the latest Moneyfacts UK Savings Trends Treasury Report reveals that all average savings rates have increased this month, something that hasn't happened since February 2011. "Not only has the market reached this milestone, but the average one-year fixed rate has increased past 1.30% for the first time since February 2016, which is finally some good news for savers," commented Charlotte Nelson, finance expert at Moneyfacts.
|No notice account||0.38%||0.48%||0.52%|
|No notice ISA||0.61%||0.78%||0.82%|
|One-year fixed rate bond||1.09%||1.18%||1.32%|
|One-year fixed rate ISA||0.95%||1.12%||1.23%|
Charlotte went on to point out that "Yet again, it is the newer banks that are boosting the rates on their savings accounts, with many fighting for the top spot in the Best Buy charts." In contrast, not a single high street bank increased its rates in July.
"This lack of desire for savers' funds is likely to continue until something forces the hand of the main banks," added Charlotte. "Until then, rate rises in the whole market are likely to remain small."
Of course, the Bank of England's latest base rate decision could be exactly the boost that is needed, but so far the few main street banks that have reported increases have only upped some of their rates, and in some cases not even by the full 0.25%. Charlotte explained that "unfortunately, the link between base rate and savings accounts had been severed a long time ago. Currently, it is difficult for savers to see there ever being a time when all rates automatically rise in line with base rate."
This means that the pressure is still on savers themselves to find that account – likely from a challenger bank – that can give them a good return. Luckily, providers, no matter how small they are, must have certain safeguards in place that make them equally safe to stash your money in.
"With savers unlikely to see a significant base rate boost, they need to get out of the mindset that switching deals is not worth the hassle," Charlotte concluded. "Instead of staying with a provider for ease, savers need to actively shop around and switch to ensure they get the best possible product."
So, why not have a look at our savings charts to see if switching would be worth your while?
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.