The UK’s pace of inflation slowed from 8.7 percent to 7.9 percent in the year to June, marking a “surprise shift” that signals the economy could be starting to stabilise.
After 13 consecutive Bank of England Base Rate hikes which were used as a factor to achieve this slower pace, savings accounts are currently paying some of the highest returns seen in decades.
From easy access accounts to fixed rate savers, Britons can expect to cash in on rates exceeding six percent in some cases, as banks and building societies work to pass on the higher Base Rate to savers. However, many are still “missing out” on the more lucrative accounts, savings experts at money.co.uk have said.
Money’s Lucinda O’Brien, said: “This drop in inflation and the resulting slowing of interest rate increases is something to be cautiously optimistic about and to take advantage of to improve your financial position.
“While this isn’t going to provide an overnight fix to your long-term savings plans, it’s a good time to reassess your finances and establish a good savings plan if you haven’t already.
“Every minute your money sits in a low-interest or zero percent current account means you’re missing out on additional savings that can be earned in interest.”
Times remain uncertain despite the more positive inflation news, so people should consider opting into the accounts that best suit their needs and circumstances.
Ms O’Brien said: “You may still want to be able to access your money instantly. An easy access savings account allows you to do exactly that – just like a normal current account – but you’ll be earning interest on your savings.”
Shawbrook Bank is currently topping the easy access savings table with a market-leading Annual Equivalent Rate (AER) of 4.52 percent.
Following new research conducted by the bank of 2,000 adults in the UK, Adam Thrower, head of savings at Shawbrook, said: “Our market-leading easy access accounts should also encourage the 46 percent who are keeping their savings in current accounts and the two in five (42 percent) – who are still being paid less than 2.5 percent – to switch knowing they will get a market-leading return, whilst providing easy access to their funds should they need it.”
Elsewhere, Ms O’Brien added: “Clearbank is currently offering an interest rate of 4.51 percent for their Chip Instant Access account, which can be opened with just £1.”
Those who have already made a start on a savings pot and are in a position to put that money away for an agreed amount of time, people can get an “even better deal” with a fixed rate bond, according to Ms O’Brien.
She said: “Atom Bank is offering 6.05 percent for a one-year fixed saver that can be opened with just £50.”
FirstSave is currently topping the list for Two Year Fixed Rate Bonds with an AER of 6.15 percent, while RCI Bank UK is offering a market-leading six percent rate for those looking to invest for three years.”
Ms O’Brien added: “As interest rates calm down, now is the time to take advantage of good fixed rates and lock away any savings that you don’t need to access for a while.”
