Best Buy Bonanza for Savers

10th October 2017

 

2017 has been a really good year for savers who shop around for the best savings accounts available, compared to the five years preceding.

 

The same cannot be said for those who have hoped their loyalty will be repaid.

 

The average easy access account rate has fallen from 0.45% in December 2016 to just 0.37% today – a drop of nearly 18%.

 

However, the best buy easy access account available today is 30% higher than in December last year, up from 1% to 1.30%.

 

After a brief period in the back seat, RCI Bank has punched its way back to the top of the Easy Access best buy table paying 1.30% gross/AER. And this is for those existing customers who already hold the account as well as new. See our Best Buy tables for more information.

 

To check out what you are currently earning and see if you can do better, register for our Rate Tracker Service

 

It’s been great to see competition in the easy access market as well as amongst fixed rate bonds and ISAs and it’s really encouraging to see so many providers getting in on the best buy action. We have even seen the likes of the Post Office and Birmingham Midshires get in on the act, neither of which has been particularly prominent in the savings market of late.

 

It’s important to check who else you have your savings with, as both share their banking licence with others.

 

The Post Office accounts are actually provided by Bank of Ireland UK, as are AA savings accounts opened since 2nd September 2015. So, if you have funds with either of these providers, you may want to choose someone else on this occasion.

 

And if you already have funds with Halifax, Saga, Bank of Scotland, Intelligent Finance, St James’s Place Bank and/or an AA account opened before 2nd September 2015, the Birmingham Midshires account might tip your total savings with these providers over the Financial Services Compensation Scheme (FSCS) limit of £85,000.

 

This year has finally seen a whole raft of rate increases across the board, from easy access accounts to fixed rate bonds and cash ISAs – in fact far more increases than decreases.

 

This time last year only 10% of new accounts were launched with a higher rate than the previous version – with the remainder offering the same or lower rates.

 

But this year, it’s been flipped on its head. In September 2017 almost 40% of all new launches were with a higher rate. This is great news for savvy savers.

 

But, as the average statistics illustrate, there are accounts out there with rates still being cut – so if you are in one of these accounts, vote with your feet and switch. It’s in your best interest!

 

For more information on the best accounts around see our Best Buy tables or to check out what you are currently earning and if you can do better register for our Rate Tracker Service. Alternatively call us on 0800 0119 705 to speak to one of our Savings Experts.

 

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