James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:
“This fall in CPI means that 80% of standard savings accounts currently beat inflation, a far cry from this time last year when none were able to do that.
“Some top fixed rates have decreased slightly over the past month, though activity in the market has been mixed recently - with some providers raising their interest paid in recent weeks.
“Top variable rates across savings accounts and ISAs continue to hold very steady as they have in recent months, though any potential reduction in base rate may precipitate more movement in this area of the market.
“It remains the case, despite the Financial Conduct Authority’s continued focus on Consumer Duty, that big banks are still failing to offer variable rates which are competitive with the rest of the market. However, it’s always wise to check the terms and conditions of all accounts regardless of their headline rate, as some may have restricted accessibility or availability.
“The new tax-year in April is less than a fortnight away, and savers who wish to utilise their full ISA allowance now have limited time to do so. Providers would traditionally improve their ISA rates, as competition for last-minute investment intensifies.
“The Bank of England’s projection is that inflation will sit at around 2.8% by Q1 2025, which should allow consumers plenty of options to see real term returns on their cash savings. It remains crucial, as ever, that savers consider all options available to them, and are prepared to switch if they could be better served elsewhere.”
*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs, and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:
“This fall in CPI means that 80% of standard savings accounts currently beat inflation, a far cry from this time last year when none were able to do that.
“Some top fixed rates have decreased slightly over the past month, though activity in the market has been mixed recently - with some providers raising their interest paid in recent weeks.
“Top variable rates across savings accounts and ISAs continue to hold very steady as they have in recent months, though any potential reduction in base rate may precipitate more movement in this area of the market.
“It remains the case, despite the Financial Conduct Authority’s continued focus on Consumer Duty, that big banks are still failing to offer variable rates which are competitive with the rest of the market. However, it’s always wise to check the terms and conditions of all accounts regardless of their headline rate, as some may have restricted accessibility or availability.
“The new tax-year in April is less than a fortnight away, and savers who wish to utilise their full ISA allowance now have limited time to do so. Providers would traditionally improve their ISA rates, as competition for last-minute investment intensifies.
“The Bank of England’s projection is that inflation will sit at around 2.8% by Q1 2025, which should allow consumers plenty of options to see real term returns on their cash savings. It remains crucial, as ever, that savers consider all options available to them, and are prepared to switch if they could be better served elsewhere.”
*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs, and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
