Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Challenger Banks Herald a Savings Market New Dawn

Personal_Finance / Savings Accounts Oct 13, 2015 - 12:03 PM GMT

By: MoneyFacts

Personal_Finance

Data from Moneyfacts.co.uk reveals that fierce competition is leading to encouraging signs of improvement in the savings market.

In the month of September, Moneyfacts has recorded 104 savings rate rises, with some increases being as high as 0.45%. This dwarfs the 28 rate reductions that have taken place over the same period. As a result, the best one-year fixed rate bond has increased from 1.90% a year ago to 2.10% today.


There is also good news for savers in terms of inflation. The latest figures show that the Consumer Prices Index (CPI) fell from 0% to -0.1% during September, which means that savings won’t be greatly impacted. Unsurprisingly, all of the 902 savings accounts currently on the market can beat inflation, and of these 730* (158 no notice, 83 notice, 268 fixed rate bonds and 221 cash ISAs) are without restrictive criteria*.

Savers who invested £10,000 five years ago, however, will have been impacted by the damaging effects of high inflation, tax deductions and low interest rates of the following years. Based on the average interest earned from easy access savings accounts and average inflation and tax at 20%, their spending power will have dropped to just £8,738.01 today.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:

“The boost to certain sectors of the savings market is providing a well-needed lifeline to many savers who have been struggling in recent times. However, despite the increased presence of competitive new brands, it is shocking to see the desertion of high street providers from the Best Buys.

“Savers now have more opportunity to achieve a higher rate of return since the Funding for Lending scheme decimated the savings market, but they must look away from the more traditional providers to secure the best rates. For example, the average easy access account from high street providers** is 0.61%; however, challenger banks offer a much better rate of 1.08%.

“Almost all accounts now beat the rate of inflation, but this is no excuse for savers to rest on their laurels as many of the main brands are using savers’ reluctance to switch to their advantage, allowing poor rates to remain.

“Savers need to vote with their feet, moving to the new challenger brands, which offer the best chance for achieving a market-leading rate. For example, the top paying two-year fixed rate bond is currently from Paragon Bank, paying 2.40% yearly. Santander, on the other hand, offers just 1.00% - a massive 1.40% less.

“As it is relatively easy to check whether these new savings providers are protected by the Financial Services Compensation Scheme or a European equivalent, there should be little to be nervous about. However, rates can fall just as quickly as they rise, so savers shouldn’t wait too long before grabbing a great deal.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in