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Savers are being urged to lock in high interest savings\u00a0accounts sooner rather than later as the plateauing Base Rate could see providers pull deals.<\/p>\n
Banks and building societies have typically been boosting interest rates\u00a0across their products in response to Bank of England Base Rate hikes, but today, the bank opted to leave the rate unchanged at 5.25 percent.<\/p>\n
But following 14 consecutive Base Rate hikes since December 2021, savings deals have been offering some of the highest rates seen in decades. The top market deal launched most recently being\u00a0Nationwide\u2019s Flex Regular Saver\u00a0at eight percent AER\/gross.<\/p>\n
However, experts are warning these deals may not be around \u201cfor long\u201d in view of the recent\u00a0Base Rate\u00a0developments.<\/p>\n
Rachel Springall, finance expert at\u00a0Moneyfactscompare.co.uk\u00a0said: \u201cThe savings market overall has been blessed by interest rate rises, whether someone is happy to lock their cash away or need a more flexible pot to dip into, they will find some attractive deals today.<\/p>\n
READ MORE: <\/strong> Nationwide launches new ‘market-leading’ 8% regular savings account<\/strong><\/p>\n \u201cAny Base Rate rise should spur savers to check their existing savings accounts, particularly as challenger banks and building societies offer some of the best rates on flexible accounts.<\/p>\n \u201cIf Base Rate were to fall, then it could result in providers cutting their rates, some may be able to do this quickly, but others might take a couple of months to plan and process – it really depends on the brand.\u201d<\/p>\n Ms Springall added: \u201cDeals offered by a challenger bank can change quickly when they meet their funding targets, so there is no guarantee a top rate will be around for long.\u201d<\/p>\n The average easy access account pays approximately 3.08 percent, while the leading easy access rate in the market stands at 5.05 percent from challenger bank Paragon, as per Moneyfacts data.<\/p>\n Don’t miss… <\/strong> For a one-year fixed-rate account, the best rate available is NS&I\u2019s 6.2 pecent on its one-year fix, with a top rate of 6.05 percent for a two-year fix.<\/p>\n Interest rates on ISAs\u00a0have also grown increasingly competitive, with the top easy access ISA rate coming in at 4.75 percent with MoneyBox.<\/p>\n Meanwhile, Virgin Money tops the table of fixes with an AER of 5.61 percent for savers looking to put money away for a year.<\/p>\n Adam Thrower, head of savings at Shawbrook Bank said after consecutive Base Rate hikes: \u201cThe peak might have finally been reached, But savings rates remain high and still present a window of opportunity for those yet to move their money.\u201d<\/p>\n We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n However, he noted: \u201cBut it\u2019s not just about the interest rate anymore. With rates now much higher, holding \u00a316,250 in a one-year fixed account could put you over the tax-free limit. Many savers are realising this and switching to Cash ISAs for tax-efficient savings – we have seen a 73 percent increase in new Cash ISA accounts from January to May 2023 compared to the same period last year.\u201d<\/p>\n Inflation is still eroding savers\u2019 cash in real terms, making it \u201cimperative\u201d for people to take time to ensure their account is offering a competitive return on their investment, Ms Springall has said.<\/p>\n Ms Springall said while there has been a positive uplift in savings rates overall, thanks to competition and back-to-back Bank of England Base Rate rises, not every consumer is seeing the benefits.<\/p>\n She said: \u201cLess than a third of the savings market pays above base rate, and there are even some easy access accounts paying just one percent. It is essential for savers to ditch and switch if their loyalty is not being rewarded.\u201d<\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/23\/590x\/secondary\/BANK-OF-ENGLAND-BASE-RATE-4971175.jpg?r=1695304991140\")
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