Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Savings Interst Rates Recap of 2015

Personal_Finance / Savings Accounts Dec 21, 2015 - 02:29 PM GMT

By: MoneyFacts

Personal_Finance

This year we have seen new brands enter the savings market and Government proposals to encourage people to save, either towards their first home, or to secure a higher return of interest during retirement.


Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“This year’s savings market continued to feel the effects of the Funding for Lending Scheme, which ultimately meant that providers lacked the appetite to compete for savers’ cash. But the year wasn’t all doom and gloom – the Government’s decision to introduce Pensioner Bonds and Help to Buy ISAs and, from April 2016, reduce tax on savings interest tax, meant that savers enjoyed some good news during 2015.

“The clear winners for ‘best rate’ were the lucrative NS&I 65+ Guaranteed Growth Bonds, or Pensioner Bonds, which paid annual rates of 2.80% and 4.00% for one and three years respectively. However, the winners for younger savers came in the form of challenger banks, which dominated the Best Buy tables throughout the year.

“Indeed, a warm welcome was extended to these newcomers as they increased competition in the market and gave savers eye-catching rates. Of particular note was the entrance of RCI Bank UK and its easy access account, which has held a market-leading position since the summer by paying a highly attractive rate of 1.65% yearly. The bar was also raised by challengers in the fixed rate market, with the average top-five deals jumping from 1.78% yearly in January to 2.10% today.

“It’s hoped that now the US Federal Reserve has raised interest rates the Bank of England will soon follow suit. However, although expectations are high, we just don’t know exactly when it will happen and by how much it will increase. Even when it does go up, there’s the possibility that it won’t greatly influence savings rates - the link between the two has been severed for many years, so the full force of a rate rise may not be passed onto savers. Nevertheless, it could still result in some positive changes in the savings market.

“If savers want a new account, it may be worth thinking about base rate tracker bonds as these deals guarantee to pay a certain rate of interest above base rate, which will be ideal when rates rise. But if savers want to invest in a longer-term fixed deal, they would be wise to check the withdrawal and access restrictions. Some accounts allow savers to access their money ahead of maturity subject to a penalty, which can vary considerably, while others allow no access at all. Checking whether an account has this flexibility will be a great safeguard in case savers want to move to a better deal when rates rise.

“Looking towards 2016, savers earning little interest or those in possession of a modest savings pot will get a massive boost from 6 April. Interest of up to £1,000 will become tax-free for basic rate taxpayers (or £500 for higher rate taxpayers), and while this won’t improve interest rates, it’s probably the best news savers have heard all year.”

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.


© 2005-2022 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