Now you see it, now you don’t

30th November 2017

As banks and building societies continue to announce the Bank of England base rate triggered changes to their existing savings account rates, at a pace equivalent to treacle, there has also been a continued battle at the top of the best buy tables.

But we have also seen a number of these best buy accounts being withdrawn after just a matter of days – presumably because the providers are being overwhelmed with demand.

This is good news as it indicates that more and more savers are prepared to move to providers that they are not as familiar with, in order to make their cash work harder.

While we hope that the competition will continue to push rates ever upwards, the problem is that many savers may decide to wait in the hope of further improvement, rather than moving now. This is because they worry that they will lose out if another provider comes along and pips the account they have chosen, especially if it’s a fixed rate bond.

However, if you procrastinate when it comes to moving your cash, you might miss out on the competitive rates that are withdrawn quickly and you will certainly be missing out on extra interest while your money is waiting in lower paying accounts.

Our advice is to open a range of accounts, where possible, to take advantage of the best rates available now. This includes fixed rate accounts – to hedge against any cuts to best buy rates going forward, as well as variable rate accounts that will hopefully benefit from any further increase to the base rate and easy access accounts to take advantage of any increases to best buy rates going forward.

Although the Bank of England base rate has only increased by 0.25% this year, best buy savings rates have increased by up to 39% since the beginning of the year – and if you don’t move quickly, you could miss out on these rates.

For more information on the best accounts around see our Best Buy tables or to check what you are currently earning and if you can do better, register for our Rate Tracker Service Alternatively call us on 0800 3213 581 to speak to one of our Savings Experts.

 

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