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Savers must act fast to cash in on a rate rise bonanza


Savers must act fast to cash in on rate rises as experts say they are unlikely to go any higher soon

  • Interest rates have been increased on 90 savings accounts in last week alone 
  • Two thirds of these were for fixed-rate deals, with best one-year rate now at 1%
  • This is as good as rates will get for now, according to experts

Savings rate rises are coming thick and fast, with 300 recorded in little over a month — around ten every working day.

Last week, there were 90 rises across easy- access accounts, fixed-rate bonds and cash Isas, according to website Savings Champion.

Around two thirds of the increases were for fixed-rate deals, bringing the best one-year rate to just over 1 per cent.

Rising rates: Last week, there were 90 rises across easy access accounts, fixed-rate bonds and cash Isas, two thirds of which were for fixed rate deals

At the start of this year, one-year bonds were at an all-time low, with the top account paying just 0.6 per cent.

Experts say any savers looking to fix their rate should jump in now as they are unlikely to go any higher.

As the economy opens and homebuyers and businesses look to borrow again, banks are looking to savers to supply the funds.

James Blower, founder of consultancy The Savings Guru, says: ‘Fixed-rate bonds fell to artificially low levels at the start of this year. Now that banks are lending again, that has been corrected.

‘The top rate of 1 per cent is probably as good as they are going to get on a one-year bond. 

‘But if you are looking for a fixed-rate Isa, hold off for a week or so. Rates here have only just started to increase.’

Kevin Mountford, co-founder of savings platform Raisin.co.uk, says: ‘This is a wake-up call for savers. 

‘Those willing to tie their money up should take advantage of top 1 per cent one-year bond rates on offer now rather than wait for a better rate which many or may not happen.’

However, big banks, including Halifax, Lloyds, HSBC, Santander, NatWest, Barclays and Virgin Money, are still awash with savers’ money. 

As a result, they still pay a pitiful 0.01 per cent on easy access accounts and just 0.15 per cent on one-year bonds. So it is vital to take advantage of top rates now to minimise your losses.

Top fixed-rate bonds come from Kent Reliance at 1.01 per cent, Shawbrook and Oaknorth at 1 per cent with both Charter Savings Bank and Secure Trust a whisker behind with 0.95 per cent. 

On fixed-rate cash Isas, the top rate is only 0.72 per cent from Oaknorth, with the next best at 0.65 per cent with Secure Trust Bank and Charter Savings Bank.

sy.morris@dailymail.co.uk

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