Grab newly raised savings rates while you still can

Savers are starting to see improved interest rates across the market, but many are missing out as the best products are withdrawn days after going on sale.

Analysis of the savings market by advice site Savings Champion found that rates have increased significantly since the start of the year.

The average easy access savings account is 1.31 per cent today compared to 1.01 per cent on 1 January 2017. The average one-year saver now returns 1.95 per cent compared to 1.4 per cent at the start of the year.

However, many of the top deals are being withdrawn from sale days after launching.

In the easy access market, the Charter Savings Bank Easy Access (Issue 8) launched with a best buy rate of 1.32 per cent on 16 November, but strong demand meant the product was withdrawn on 22 November.

Similarly, the Bank of Cyprus UK Online Easy Access Account launched its table-topping 1.35 per cent rate on 14 November. This saver was then pulled from the market on 17 November.

One-year fixes have also been withdrawn from sale almost as soon as they’ve launched. The OakNorth Bank 12 Month Fixed Term Deposit Account was launched on 14 November with a headline rate of 1.87 per cent but was closed to customers on 17 November.

Anna Bowes, director of Savings Champion, is encouraging savers to act as soon as possible to seal the best rate.

‘Some people will suffer from choice paralysis – which means that, as they can’t decide what the best thing to do is, they will do nothing,’ she says.

‘This means missing out on valuable extra interest while they are waiting for things to improve further and therefore missing out on competitive rates that are withdrawn quickly.’

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