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The upcoming Moneyfacts UK Savings Trends Treasury Report shows that the average no notice rate now sits at its highest point since August 2016, following two consecutive months of rate rises. This means those looking to keep their savings pot within reach should now be able to find some better rates.
Not only that, but with 14 providers having made increases and/or decreases this month, it could very well be that your easy access account's variable rate has seen a drop recently, or you'll be able to find a better rate elsewhere. The table below illustrates how low the average has sunk, with today's increased rate still lower than many would like, but nonetheless significantly better than last year.
|Average no notice rate (excluding ISAs)||0.54%||0.38%||0.48%||0.51%|
Charlotte Nelson, finance expert at Moneyfacts, warns: "This area of the savings market has been increasingly volatile, particularly at the top. Most top-paying rates come from challenger banks, who are currently jostling for the number one spot. These rates do not tend to last long."
Interested savers must act fast because providers cannot sustain higher rates for long. With not just more interest to pay out but also more cash to handle, it's easy to see why challenger banks reduce their rates as much as they increase them, "walk[ing] a thin line between wanting to remain competitive and not being oversubscribed" as Charlotte describes it.
Further data suggests there are now more interested savers than there have been in a while, with the Treasury Report finding that consumer demand for variable rate products has risen this month, and additional data from the Bank of England revealing that £3.5 billion was put into easy access accounts in May.
Part of this could be savers waiting for a base rate rise to occur, with the hopes of many now set on September's Monetary Policy Committee meeting. However, Charlotte suggests this isn't the only force at play: "The latest figures from Key Retirement show £1.71 billion was released from homes via equity release in the first six months of the year. This extra cash is likely to head straight into easy access while these borrowers decide what to do with the funds."
Charlotte concludes: "With 209 easy access products paying 0.50% or less, it would be wise for any saver currently sitting in a no notice account to review their options, to ensure they are getting a Best Buy worthy deal." So why not have a look at our easy access charts, with or without a bonus.
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