Savers are being urged to act fast to snap up the top deals as interest rates on fixed accounts dip.
Following today’s inflation result, James Hyde, a spokesperson at Moneyfactscompare, said: “Inflation remains well above the Government’s target of two percent, and as such is still eating into savers’ money in real terms. It is vital that people consider their options to ensure their investments are delivering competitive returns.”
According to Mr Hyde, some of the latest top fixed rate savings deals have “fallen slightly” since the last inflation announcement, although top rating easy access accounts have continued to rise.
He said: “There is still a good deal of competition and movement at the top end of the market, so savers should have the flexibility to spread their cash to allow them to take advantage of higher returns but also retain resilience for any unexpected circumstances.
“However, people should be aware that popular accounts may be pulled or their rates could decrease, so swiftness to secure the best option is key.”
Chorley Building Society is topping the list for easy access savers with an Annual Equivalent Rate (AER) of 5.3 percent. This far exceeds last month’s market-leading deal from Paragon Bank at 5.05 percent.
Meanwhile, the top fixed rate on offer is the Union Bank of India’s one-year account with an AER of 6.11 percent. This reflects a drop from the top rate last month, which saw NS&I take the lead at 6.2 percent.
The next top fixed rate on offer is JN Bank’s 5.97 percent on its three-year account. This marks a slight drop from last month’s top rate with BLME at six percent.
Following 14 consecutive Base Rate rises, the Bank of England’s decision to pause at 5.25 percent in September precipitated “a cooling” in the rise of top savings rates, but Mr Hyde noted there continues to be “substantial activity” between providers, and competitive deals are available.
He said: “It remains essential that savers are prepared to vote with their feet if they are not being incentivised to show loyalty. Savers should consider which type of account suits them best, and how much access they require to their savings, to secure the best return.”
Providers have again been especially willing to “raise the bar” on ISAs this month, with several notable improvements introduced across the market.
Chorley Building Society is also offering the highest rate for an easy access ISA with a 5.15 percent AER. This is up from Moneybox’s leading rate last month at 4.75 percent.
Virgin Money continues to retain the top rate for one-year fixed ISAs with an AER of 5.85 percent, unchanged from last month.
However, the top two-year fix has marginally dropped from Kent Reliance’s 5.79 percent account to NatWest’s 5.65 percent offer.
UBL UK also retains its top spot in the five-year fix range, offering an AER of 5.54 percent, unchanged from last month.
Mr Hyde said: “With the choice of ISA products among the highest level on our records, and variable rates still rising, now may be a good time to consider options in this area.
“Regardless of which options savers choose to pursue, they should consider all options fully alongside their personal circumstances, and be aware of less established brands which may be offering more enticing deals.”
