The average rates on selected savings products have reached their highest level in almost 10 years according to recent analysis by Moneyfacts.co.uk. Its UK Savings Trends report for September revealed that average easy access rates rose to 0.84%, the highest level since December 2012. Additionally, the average rate for notice accounts rose to 1.41%, the highest rate since January 2009. The average one year fixed ISA now stands at 1.96% and one year fixed bonds have breached 2% for the first time since December 2012, averaging 2.29%, the highest level since November 2012.
There is further good news for savers after it was reported that product choice has improved for the 7th consecutive month. There are now 1,754 savings deals on the market, a huge increase when compared to the recent low of 1,340 products in April 2021.
Rachell Springall, Finance Expert at Moneyfacts.co.uk said “The back-to-back base rate rises have had a positive influence on variable savings rates, and this, along with notable competition, has seen the average easy access rate rise to its highest level since 2012".
She did provide some words of warning, however, stating "not every account has improved over this period, so it’s vital savers compare their existing accounts and switch to take advantage of the current competition".
How to get the best savings rate on the market
With savings rates likely to continue climbing in the coming months due to predicted rises in the Bank of England base rate, we explain how to source the best savings rates on the market and the easiest ways to take advantage of the best deals.
Compare the best savings rates
Check out our savings tables. Updated weekly, we provide a roundup of the best savings rates including those available via easy access accounts, notice accounts, fixed rate bonds, fixed rate ISAs and more.
Use a savings platform
Online savings platforms such as Hargreaves Lansdown’s Active Savings* and Raisin UK* allow you to open and move cash between a wide range of bank and building society savings accounts to ensure that you maximise the interest earned on your money. A savings platform allows you to easily move money at the click of a button by using one simple online login, as opposed to having to separately open accounts with each bank or building society before moving your money across. For more information, check out our article 'Best cash and online savings platforms in the UK'.
Consider building a cash ladder
A cash ladder involves spreading your money over a number of different products, with different maturity dates, in order increase the interest earned on your savings while also providing the flexibility to take advantage of future interest rate rises. We explain it in more detail in our podcast below.