Returns paid to investors using the five best easy access savings accounts have increased by an impressive 0.23 per cent in the past year, despite interest rates remaining static.
The rates have risen as a result of the stiff competition between banks, according to analysts. The banks need savers in order to generate income, according to experts, after providing credit failed to offer the same opportunities for banks as before the recession.
New figures show that the average rate offered by the top five instant access savings accounts is now 2.97 per cent, which is up from 2.74 per cent recorded a year ago. Rates on other savings accounts, including ISAs and two-year fixed rate savings bonds were also up by 0.18 per cent and 0.46 per cent respectively.
Consumer groups are now campaigning for clearer figures to be displayed to show the true interest rates offered to each customer. Moneyfacts.co.uk’s Sylvia Waycot, said, “It is great news that savings rate are creeping upwards even though the Bank of England base rate has stuck stubbornly at 0.50 per cent. Sadly, inflation is still causing the biggest erosion of spending power, which is why it is so important to check regularly that you are earning the most interest on offer.”
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