Providers increasing easy access rates | 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.

MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Braadbaart

Lieke Braadbaart

Online Writer
Published: 11/10/2017

There has been a noticeable increase in the number of savings providers putting up their easy access rates of late, which shows that it's not just one-year bonds that have been benefitting from competition in recent months. Indeed, the average of all easy access savings rate increases outdid that of one-year fixed bonds last month, so the savings market is certainly moving in the right direction.

Specifically, the average on all easy access rate increases stood at 0.34% in September, compared with an average increase of 0.18% for one-year fixed bonds. So, even though easy access rates saw slightly larger cuts as well, at an average of 0.20% compared with 0.18%, the average still had a larger net increase and even saw its greatest rise for the year.

What's more, so far this month there have already been six rate increases and not a single cut, with the average increase standing at 0.22%. What this means is that, not only have providers been putting up their easy access rates, they've been doing so by impressive amounts.

"The fixed rate bond market has increased by small increments over time, while providers have increased rates on their easy access accounts far more steeply and quickly," commented Charlotte Nelson, finance expert at moneyfacts.co.uk.

As a result, the Best Buys are looking a lot better than they have been for a while, with increased competition seeing the top rate now sit at 1.30% for accounts without a bonus – offered by RCI Bank – and at 1.28% for those accounts with a fixed bonus for a set amount of time, offered by Bank of Cyprus.

"All of this positivity wouldn't be possible without the fresh energy of the challenger banks, whose intense competition for the top of the Best Buys has kept rates rising," explained Charlotte. "However, with rates rising so quickly it can sound too good to be true for savers – they know all too well that this positivity doesn't often last."

Disclaimer

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

white abstract pattern

Cookies

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

I accept. Read our Cookie Policy