Savers must act quickly to cash in on rate hikes as experts say they are unlikely to move any higher anytime soon
- In the past week alone, interest rates on 90 savings accounts have increased
- Two-thirds of this was for fixed income deals, with the best one-year rate now at 1%
- This is as good as fares will get for now, according to experts
Savings rates are rising fast and fast, with 300 registered in just over a month – about ten per business day.
According to the website Savings Champion, there were 90 gains in easy-access accounts, fixed-income bonds and cash Isas last week.
About two-thirds of the increases were for fixed-income deals, bringing the best one-year yield to just over 1 percent.
Rising rates: Last week saw 90 rises in easy-to-access accounts, fixed-income bonds and cash Isas, two-thirds of which were for fixed-income deals
Early this year, one-year bonds were at an all-time low, with the highest bill paying just 0.6 percent.
Experts say all savers looking to lock their interest rates should jump in now, as they’re unlikely to go any higher.
With the economy reopening and home buyers and businesses looking to borrow again, banks are looking for savers to provide the money.
James Blower, founder of consulting firm The Savings Guru, says: “Early this year, fixed-rate bonds fell to artificially low levels. Now that banks are lending again, this has been corrected.
“The top rate of 1 percent is probably just as good as a one-year bond.
‘But if you’re looking for an Isa with a fixed rate, wait a week. The rates here have only just started to rise.’
Kevin Mountford, co-founder of savings platform Raisin.co.uk, says: ‘This is a wake-up call for savers.
“Those willing to commit their money should take advantage of the highest one-year bond yields of 1 percent now being offered instead of waiting for a better rate, which will happen much or not at all.”
However, major banks, including Halifax, Lloyds, HSBC, Santander, NatWest, Barclays and Virgin Money, continue to be flooded with savings.
As a result, they still pay a pitiful 0.01 percent on easily accessible accounts and just 0.15 percent on one-year bonds. So it is vital to take advantage of top rates now to minimize your losses.
The best fixed income bonds come from Kent Reliance at 1.01 percent, Shawbrook and Oaknorth at 1 percent, with both Charter Savings Bank and Secure Trust trailing 0.95 percent.
On fixed-rate Isas, the highest rate is just 0.72 percent from Oaknorth, with the second-best rate at 0.65 percent at Secure Trust Bank and Charter Savings Bank.