In September, Moneyfacts recorded 29 savings rate rises. Disappointingly, rate reductions over the same period completely outshone this figure, with the number of rate decreases standing at 164 – which translates to around six cuts to every rate rise – with some deals falling by as much as 0.75%.

Statistics released today show that the Consumer Prices Index (CPI) rose to 1.0% during September, which means savers now have very few accounts to choose from that match or beat this level. Today, less than half (266) of the 644* savings accounts currently on the market can beat or match inflation, and of these 250 (12 no notice, 18 notice, 152 fixed rate bonds and 68 cash ISAs) are without restrictive criteria.

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

“Savers have little to look forward to as cuts keep coming, but on the bright side, the total number of cuts made during September was less than half that seen during August. The majority of reductions came closely around the base rate announcement, with a devastating 388 cuts made in total for that month.

“Savers will be hoping for some stability in the market, but this is unlikely to come to fruition any time soon, particularly as some providers have left time between announcing cuts to their accounts and implementing them to give savers enough notice. This means that more cuts are expected during October, and if competition continues to drift we could see a substantial number of further cuts made between now and the end of 2016.

“Inflation rising to a 22-month high will now play on the minds of many consumers, as there will be very few accounts paying 1% or more. Some may pin their hopes on the Autumn Statement to provide some good news, but so far no initiatives have been divulged that could benefit struggling savers.

“It’s not just a lack of incentive to save over the longer-term that is becoming an issue, as short-term accounts, such as regular savings accounts and one-year fixed bonds, are also being hammered by cuts. The best fixed regular savers have been cut from 6% to 5% and the average one-year fixed bond has just fallen below 1% for the first time on record, to a poor 0.99%.

“As we draw nearer to the end of 2016, consumers may start thinking about how they might be able to boost their savings pots with rates being as low as they are today. It’s always wise to consider high interest-paying current accounts, but many of these are now also doomed to face huge cuts. Similarly, there are several best buy regular savings accounts to choose from, but savers will also find these pay less today compared to years gone by. Therefore, savers shouldn’t wait around too long to grab a best buy deal, as more cuts and withdrawals may well be on the way.”

*Data Note: Please note that the 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 of this data should you require it.

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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