Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18
Big Cap US Stocks Fundamentals - 13th Apr 18
Jaguar Land Rover Cuts 1000 Jobs on Diesel Sales Slump, Long-term Discovery Sport Review - 13th Apr 18
Stock Market SPX May Tangle with the 50-day MA - 13th Apr 18
Longtanding Chinese War: Intrigue & Betrayal - 13th Apr 18
How I Own My Gold - 13th Apr 18
ISupply Energy Consumer Warning - Never Put Your Account Into Credit! - 13th Apr 18
SPX Resistance May Prompt A Massive Short Squeeze - 12th Apr 18
Stock Market High Volatility is Not Consistently Bearish for Stocks - 12th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

UK Savers’ Apathy Can Cause them to Miss the Best Deals

Personal_Finance / Savings Accounts Jun 13, 2017 - 03:27 PM GMT

By: MoneyFacts

Personal_Finance

Data from moneyfacts.co.uk can reveal that the savings market has shown some signs of improvement since the start of 2017, with the number of savings rate rises outweighing cuts for the fifth month running. In fact, rises outnumbered cuts by a third, as Moneyfacts recorded 95 rate rises in May versus 60 rate reductions.


Statistics released today show that the Consumer Prices Index (CPI) rose to 2.9% during May, so despite a boost to savings rates, not one of the 750 standard savings accounts on the market* can outpace inflation.

While rising inflation could well be a deterrent to those looking for a fair return on their cash despite the number of interest rate rises for cash savings, this apathy can cause them to miss out on the best deals if they are not quick enough in applying or fail to monitor the changing market online.

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

“While it’s positive to see a greater number of savings rate rises over the last month, this was largely thanks to the challenger banks and mutuals, which continue to prop up the market with the best deals. Inflation is becoming more of a threat and rates are still low compared to years gone by, which could be putting off savers looking to build a nest egg.

“Savers must not be deterred from searching for a good deal, however, as their apathy could mean missing out on much better returns. As an example, someone with £20,000 in a NatWest Instant Saver would earn just £2 over a year, but they could earn £222 if they held an easy access account with Charter Savings Bank paying 1.11% instead, which is currently the top deal.

“If savers do decide to chase down a more competitive deal, they shouldn’t wait around too long. A good example of this is the Ford Money regular saver paying 4%, which was withdrawn after just one day. Challenger banks can change their savings range much more quickly than other brands, which means savers will need to be fast in order to grab the highest rates. In many cases, if savers aren’t online, they could well be missing out on not just savings alerts, but also some of the best deals.

“Those who prefer to open their savings account on foot will find a distinct lack of interest in cash savings among the high street brands, which seem to be taking a vacation from the Best Buy tables. Similarly, those savers investing in Cash ISAs may well find better returns on non-ISAs – even if they pick the top ISA, they could be missing out on better savings interest away from the scheme.

“Even if interest rates stay low, not all hope is lost for savers, as there are still Government initiatives that can support those eligible, such as the Personal Savings Allowance (PSA), Help to Buy ISA and Lifetime ISA (LISA). Those saving for a deposit on their first home would be wise not to miss out on a 25% boost by using a Help to Buy ISA, and if the scheme ends before they have the chance to buy a home, they can move the funds into a LISA. Skipton BS launched the first ever Cash LISA last week, which will hopefully spur on other institutions to follow suit.”

*Data Note: Please note that these savings product numbers only include deals that are available to all UK residents (this figure does not count each interest payment option for each account). Moneyfacts has chosen not to include products that have limited access, such as locals-only, high net-worth clients or linked products which mean you must have an existing account to obtain headline rates. Moneyfacts has taken the view that as these accounts are not available to your entire readership, their inclusion may be misleading to your readers by directing them to accounts they may not be entitled to. We do, of course, hold all this data should you require it. Our daily Moneyfacts savings rate monitoring started in July 2015 and is a record of live standard savings account changes, which include fixed rate bonds of all terms, all ISAs, notice accounts and no notice accounts.

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.


© 2005-2018 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

6 Critical Money Making Rules