The average rate of the top-five
savings accounts has plunged to just 2.89 per cent from 3.04 per cent during the first six weeks of 2010, it has emerged.
Furthermore, eight of the top-ten
savings account deals on the market have either seen their rates fall or have been pulled entirely. For example, Chelsea Building Society withdrew its 2.75 per cent instant account for over-50s, while the rate of Scottish Widows Internet Saver dropped from 3.01 per cent to 2.70 per cent.
Ulster Bank also reduced its eSavings Plus account from 3 per cent to 2.87 per cent.
Money Supermarket says savings rates reached a peak in mid-October, with the Citibank Flexible Saver Issue 6 offering 3.30 per cent and the average top-five deal hitting 3.17 per cent.
Savings head Kevin Mountford points out that basic-rate taxpayers need a
savings account paying at least 3.63 per cent to gain any benefit from their savings because of record increases in inflation.
"With the best deals disappearing daily, it's vital consumers keep an eye on the best-buy tables and check the small print behind any good rate advertised, especially in the run-up to this year's ISA season," he suggests.
