🔔 The Family Building Society leaves the easy access party, as Kent Reliance arrives

The Family Building Society’s market leading Premier Saver (3), paying 1.51% on balances of £15,000 plus, has been withdrawn from sale ahead of the closing of its funding window on 29th March 2019.

This funding window is an unusual feature on an easy access savings account, as after the deadline no further cash can be added. So, savers who have already opened the account and are looking to take full advantage of the competitive rate need to ensure they have deposited the amount they want to, in good time. And although it's an easy access account and therefore you can get hold of your money immediately, once withdrawn it can’t then be replaced.

Although it’s disappointing to see the market leader withdrawn from sale, earlier in the week we saw a new provider join the 1.50% gang. Kent Reliance launched the latest issue of its Online only easy access account – issue 33 – paying 1.50% gross/AER on a minimum balance of £1,000.

Once again, although wholly expected, the Bank of England base rate was not changed in the latest Monetary Policy Committee (MPC) meeting this week.

But as the ongoing competition amongst best buy accounts illustrates, there is no need to wait for a base rate rise to increase the interest you can earn on your savings.

Even if you opened a market-leading account a few years ago, if that rate included a bonus, you could now be earning a pittance if you failed to move your money when the bonus ended.

For example, five years ago one of the best-paying easy access accounts available was the Post Office Online Saver Issue 11, which was paying 1.30% gross/AER - including a bonus rate of 0.40% for 12 months. However, over the years not only has the bonus ended, but the underlying rate also fell, so anyone still holding this account is now earning just 0.50% gross/AER.

One way to avoid this potential issue is to choose a savings account that offers a rate without a bonus. The aforementioned Kent Reliance Online only easy access account - issue 33 is paying the leading rate of 1.50% gross/AER and that rate does not include a bonus, nor are there restrictions on the number of withdrawals allowed each year, unlike some other accounts in the top five.

But it still makes sense to check the rates at least annually – and switch if it is no longer competitive.

Something to watch out for when reviewing your accounts is to make sure you are checking the rates of the accounts you actually hold. This might sound obvious, but many accounts are reissued, paying different rates for different customers, depending on when they opened the account. Our Rate Tracker service can help with this as, if you add the correct issue onto your account, we will track and list the correct rate for you.

Or you could consider a simple savings account that pays the same rate to all customers – regardless of when the account was opened.

RCI Bank’s Freedom Savings account* is a great example of this – and whilst it hasn't always been market leading, it has paid a competitive rate ever since it was launched in June 2015. It is currently sitting just outside our best buy table, paying 1.42% gross/AER.

If you haven’t checked your savings accounts for some time, now’s the time to do it and switch to make your cash work harder. It’ll be you who reaps the benefits.

For help in finding the best rates for your needs, check out our best buy tables or call one of our savings experts on 0800 011 9705. We’d love to help.

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