🔔 Research shows that savings providers are still cutting rates, so where can you find the best rates?

Six months on from the base rate rise in August last year, increasing from 0.50% to 0.75%, research from Savings Champion shows that only 38% of all variable rate accounts passed on at least some of this rise. Even worse, since the beginning of 2019, 78 variable rate accounts have actually seen a reduction in rate.

It is no longer the case that a rise in the Bank of England base rate means a rise in your savings rate, although a cut in the base rate can almost guarantee the interest rate you are earning will go down.

Following the first base rate rise in a decade back in November 2017, only 50% of all variable rate accounts increased, a shockingly low statistic that we didn’t think could get much worse. Fast forward to August 2018 and the reaction from the providers was even more shocking.

The good news is that rates on best buy accounts have been rising month on month for a few years now, as competition in the market and appetite from providers to either raise brand awareness or bring in new business (or both) have been driving rates up. In fact, best buy easy access accounts have increased three times more than the overall average easy access rate.

Just before the base rate rise in August 2018 ,the very best easy access account came from the Post Office paying 1.33% AER. Today, the best rate comes from The Family Building Society, paying 1.51% AER, while the average rate of all easy access accounts is now just 0.53% - up from 0.47% in July 2018.  

Where can you find the best rates today?

Currently some of the best easy access accounts pay 1.50% AER from Cynergy Bank* and Marcus by Goldman Sachs, both online only and available with just £1. Virgin Money also pays 1.50% AER, but as the name of the account - Double Take E-Saver Issue 10 – implies, only two withdrawals can be made per calendar year. You can get slightly more from The Family Building Society, as mentioned above, at 1.51% AER but with a much higher minimum requirement of £15,000. Terms and conditions apply, so check out our full easy access best buy tables for more information.

Best buy notice account rates are at a three year high at the moment, so if you’re happy to give notice for any access you require, Charter Savings Bank currently dominates the best buys, paying 1.61% AER on its 60 day notice account and 1.90% AER on its 95 day notice account. More details can be found on our notice account best buy table.

Alternatively, if you want the best of both worlds, Investec has a hybrid account which pays notice account rates, whilst offering easy access to some of the balance. For example, it pays a rate of 1.70% AER on it’s 95 day notice account, rising to 1.75% if you qualify for the loyalty rate, with regular easy access to 20% of your balance. For more details read our recent article. It may take a little getting your head around ALL the benefits that this account can offer, but for many it is likely to be well worth it. 

If you need more help, please contact one of our savings experts on 0800 011 9705.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

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