As the Bank of England’s recent interest rate cuts continue to impact the savings market, savers are being urged to act quickly to secure some of the best deals still available. These include one-year fixed-rate savings bonds paying up to 4.35% and easy-access accounts offering rates as high as 4.5%.
The news that UK inflation rose slightly more than expected in December has presented both pros and cons for savers. While it has prompted many experts to rule out another imminent interest rate cut, the higher inflation also means the real returns received by savers are being eroded.
“January is the ideal time for savers to set new financial goals and check if their savings are working as hard as they can,” says Caitlyn Estell at the financial data provider Moneyfacts. “It is crucial that savers are fast to react to attractive deals, otherwise they face missing out.”
One such attractive deal was the one-year fixed-rate bond offered by Marcus, a banking brand operated by Goldman Sachs, which briefly paid 4.55% before being withdrawn after a surge of applications. The top one-year fixed-rate bond currently available is from Meteor in conjunction with OakNorth Bank, paying 4.35% on £1,000-plus.
For savers who prefer easy access to their money, Chase (the UK retail arm of US bank JP Morgan) is offering a savings account called Chase Saver that pays 4.5%, though this rate is boosted by a 2.25% bonus for the first 12 months.
“Those hoping to preserve returns on cash held in bank and building society savings would be wise to seek out the most competitive deals sooner rather than later,” advises Alice Haine at the investment platform BestInvest.
With the savings landscape remaining highly competitive, savers are encouraged to closely monitor the best-buy tables and act quickly to secure the top rates before they disappear.