Moneyfacts UK Savings Trends Treasury Report data, yet to be published, highlights that the total number of savings products has fallen to an all-time low, with a staggering 274 savings products withdrawn from the market since January.

Charlotte Nelson, Finance Expert at Moneyfacts, said:

“Two months on from the base rate cut, you would hope that the dust had settled by now. Unfortunately, providers are still withdrawing products at an alarming rate, with the total number of products down 127 since August. The number of savings deals available, currently sits well below the 2,093 peak from April 2012. Instead of reducing rates by minuscule amounts and taking the criticism from savers and the media, many institutions are opting to simply remove certain products on offer.

“The continuing downward spiral in rates sees many providers - particularly smaller building societies - creep up the best buy tables. Savers sensing a good deal immediately flock to these new best buy rates. Since these smaller providers are unable to cope with the influx in demand, they have no choice but to withdraw the product from the market.

“The introduction of the Term Lending Scheme is only going to exacerbate this issue. This is evidenced by the fact that when the Funding for Lending Scheme was introduced, not only did rates drop, but products were removed from the market altogether.

“At a time when the FCA is implementing new policies* designed to get savers switching, this reduction in product numbers is concerning. Not only will savers have a reduction in choice, but with rates in a constant freefall it is starting to become a pick of a bad bunch.”

The Moneyfacts UK Savings Trends Treasury Report, out later this month, is a comprehensive monthly overview of current and historical data for the savings and investment market, incorporating written commentary alongside graphs and tables highlighting key trends.

*Policies to be introduced December 2016.

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.

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