Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Reverse REPO Market Brewing Financial Crisis Black Swan Danger - 29th Jul 21
Next Time You See "4 Times as Many Stock Market Bulls as There Are Bears," Remember This - 29th Jul 21
USDX: More Sideways Trading Ahead? - 29th Jul 21
WEALTH INEQUALITY WASN'T BY HAPPENSTANCE! - 29th Jul 21
Waiting On Silver - 29th Jul 21
Showdown: Paper vs. Physical Markets - 29th Jul 21
New set of Priorities needed for Unstoppable Global Warming - 29th Jul 21
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK Savings Interest Rates Surprise as 1 Year Bonds Reach Two-year High

Personal_Finance / Savings Accounts Jun 13, 2018 - 03:48 PM GMT

By: MoneyFacts

Personal_Finance

The latest data from Moneyfacts.co.uk can reveal that the savings market has improved significantly over the past year, so much so that both average rates and table-topping Best Buy deals beat the rates seen around two years ago.

Savers should start to notice better rates in the market overall, as rate rises have outweighed cuts for 17 consecutive months, with Moneyfacts.co.uk recording 115 rate rises and 44 rate cuts in May. This is in stark contrast to two years ago, as savings cuts (156) outweighed rises (18) during May 2016.


Statistics released today furthermore show that the Consumer Prices Index (CPI) remained at 2.4% during May, so there are 17 fixed rate bonds (based on a £10k deposit) that can beat or match this rate*.

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

“What a difference a year or two can make when it comes to savings interest. Right now, providers are increasing rates and sparking competition within the Best Buys, whereas two years ago 156 savings cuts outweighed 18 rises and inflation sat at a remarkably low 0.3%.

“Still, savings rates have a way to go before they can come even close to paying the rates seen a good six years ago, before Government lending initiatives wrecked the savings market. The good news is that these schemes have closed, which means the market can finally start to gradually get back on the right track.

“One of the areas to see some special attention has been the short-term bond market, with one-year bonds improving so much that the top rates rival those seen in 2016. Indeed, the average one-year bond rate stands at 1.29%, the highest recorded rate since April 2016 when it stood at 1.31%.

“A month ago we saw the first 2% one-year fixed bond since August 2017, from Gatehouse Bank, who took the spotlight and followed it up with rate rises on its two, three and five-year bonds last week. In retaliation for this table-topping one-year bond, Atom Bank increased its one-year rate to the now market-leading 2.05% last week.

“One thing savers may notice is that both deals are from brands they may not be familiar with. However, that doesn’t mean they can’t be trusted. Gatehouse Bank (which may be better known under its former name, Milestone Savings) is an Islamic bank and has so far claimed to have never under-paid their expected profit rates. Meanwhile, Atom Bank has been going strong since they first launched their savings bonds in 2016 and is keen to seek savers’ deposits as a challenger bank.

“One reason savers might miss out on these two offers, and indeed most of the other top-ten Best Buy deals, is if they refuse to bank online or via smartphone. Not being online can also mean missing out on vital rate alerts. Getting a family member or friend to keep an eye on the Best Buy charts could be a great way to stay in the know for those that do not enjoy the online lifestyle.

“Savers as always will want to act fast to take advantage of the top rates, but they should also be mindful of locking into a fixed bond prematurely. If this does happen, savers should carefully check the terms attached to any cooling-off period before they try to extract their funds, as in most cases there will be a penalty to pay for those who change their mind.”

*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.

moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select. The site also provides informative guides and covers the latest consumer finance news, as well as offering a weekly newsletter.

MoneyFacts Archive

© 2005-2019 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