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."
This means that savers should act fast, before these rate increases turn back into rate cuts. Have a look at the easy access charts with or without a bonus, and see if there's a deal worth snapping up, before it may be too late.
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 Any products featured may be withdrawn by their provider or changed at any time.