Best Fixed Rate Savings Deals Vanish from Sight!

By: MoneyFacts

Savers have had it rough over the years and with endless cuts decimating the market, some potential investors may not realise that a few best buy savings deals are in fact disappearing altogether.

Indeed, research from Moneyfacts.co.uk can reveal that in July there were 13 best buy savings deals withdrawn entirely from the market, that have yet to be replaced. Some of the best deals have only sat on the shelf for a week* before being closed to new customers, a clear sign that providers can not cope with the onslaught of new savers looking for a home for their cash.

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

“Savers are facing never-ending cuts to multiple types of accounts, which results in many investors jumping ship from one provider to another to get a more competitive return. However, despite the will to switch, this practice will not save them if they are not quick to grab the best rates, as providers are resorting to pulling the deals out of the market altogether.

“Decent savings deals are facing slaughter: repetitive cuts are just not practical for all providers to continue, so the only option left to limit the amount of cash coming in is to withdraw the best deals entirely and not replace them.

“Small providers that would have never envisaged being market-leaders are slowly finding themselves near the top of the market, due to other providers falling out of the best buys. This has resulted in a vicious cycle of rate reductions so that they can move to a more mid-market position, or indeed withdrawing the deal entirely due to countless applicants.

“Withdrawing the best buys is only going to cause panic among savers struggling to get a decent return, so it is unlikely we’re going to see an end to this mass exit from the best buys anytime soon.“

*National Counties BS withdrew its best buy easy access rate of 1.30% after three days, Secure Trust Bank withdrew its two year fixed bond after four days, Virgin Money withdrew its 1.30% fixed bond after six days and Raphaels Bank removed its 2.20% five year fixed bond from the market in just seven days.

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