Savings rate increases have now outweighed cuts for a whopping 20 months in a row, the latest data from Moneyfacts.co.uk reveals, with September seeing the largest number of savings rate rises since our records began.
December 2017, one month after the previous base rate rise, saw the previous record of 237 rate increases. This number has been blown out of the water by September's 309 rate rises, with the same month seeing only 33 cuts.
|Number of savings rate rises||237||129||219||309|
|Number of easy access rises (non-ISA)||98||22||34||76|
|Number of fixed rate bond rises||35||52||108||86|
|Average easy access rise (non-ISA)||0.18%||0.21%||0.16%||0.18%|
|Average fixed rate bond rise||0.22%||0.17%||0.17%||0.15%|
Additionally, Moneyfacts.co.uk finance expert Rachel Springall found that "over 100 of these increases were on easy access and notice accounts (excluding ISAs), as part of the aftermath of the base rate rise in August … [As a result,] the average rise to easy access accounts (0.18%) was slightly higher than those to fixed rate bond rises (0.15%)."
Base rate isn't the only reason rates have gone up recently, however, with competition among challenger banks heating up recently thanks to the new addition of Marcus by Goldman Sachs with its 1.50% easy access account. Other providers have had to up their easy access rates to remain attractive, with consumers being the real winners of this rate war.
"Challenger banks have rallied to push up rates to retain a prominent position in the savings market, with a recent focus on easy access accounts," said Rachel. "In fact, while the average easy access account pays just 0.63%, this is still the highest return seen in more than two years, as it also stood at 0.63% in February 2016. What's more, the top 10 easy access deals now pay 1.40% on average."
If you're interested in easy access without a temporary bonus, consider Aldermore.
With the only readily accessible alternative to an easy access account being high interest current accounts, which can pay more interest but usually on smaller sums, savers will have to think carefully about what they want to do with their hard-earned cash. While a high interest current account can offer a rate as high as 5%, they usually come with strict eligibility criteria.
"With all this in mind, savers will need to rethink what vehicles to use to stash their cash, but also consider the more unfamiliar brands, which often offer a better deal," Rachel concluded. So, why not have a look at the top easy access accounts, with or without a bonus?
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.