Savings rates begin to improve
17/08/2015
Savings rates, which have been at a record low for years, are finally beginning to edge upwards, according to research from Moneyfacts.
The average interest rate on Moneyfact’s top ten savings accounts has risen from 1.39% a year ago, to 1.48% now. As savings rates have seen their record low for years now, the website believes the small rise “restores hope” in the market. The change also comes before the potential interest rate rise, which most industry experts have predicted will come in 2016.
The research from Moneyfacts also found that although savings rates may be improving, providers are increasingly placing tighter controls on how often a customer can access their savings, even in “easy access” savings accounts. In some cases, savers are only able to access their money three times a year without any consequences.
Moneyfacts have now suggested that the Financial Conduct Authority should investigate the matter on behalf of the consumer.
Charlotte Nelson, a finance expert at Moneyfacts, said:
"Perhaps it's time the FCA started to look more closely at these restrictive accounts - transparency will only go so far after all.
"However, while this is great news for any saver looking to maximise their returns, savers may be disappointed to find out that many accounts are now limiting access to their funds, with restrictions varying from a maximum of 150 withdrawals per year to just one."
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Recession Watch : Savings rates
One of the worst hit sectors of the UK over the last few months has been the saving sector. Many people have literally been forced to spend their nest eggs as opposed to living off their interest as they had done in the past. A large number of banks have reduced their savings rates to near 0% and those offering anything like a competitive rate want you to lock your money in for a substantial perio...
Read MoreUK savers set to feel the pain as interest rates fall
As speculation that UK interest rates are set to fall this week continues to build there are growing concerns in the UK savers market where rates have come down substantially over the last few weeks. These are very much the forgotten group of society, the ones who have made plans for the future, saved their funds for a rainy day and had hoped to live off their interest. However, as interest rates...
Read MoreCustomers Benefit From 'Savings War'
Savers continue to be the big winners of the credit crunch, new data from best-buy tables suggests.Rates for both tax-free cash ISAs and mainstream savings accounts are on the up, the Guardian reports. The high-street "savings war" is a direct result of the credit crisis, the primary feature of which is the freezing of inter-bank lending.With access to funds on these money markets limited by the h...
Read MoreLook after the pennies and the pounds will look after themselves
There are many sayings in the financial industry and one which is sometimes ridiculed is "look after the pennies and the pounds will look after themselves". However, if you take a step back and review this particular saying you may well begin to understand exactly where it comes from! While the vast majority of us will at some time look to save money on our monthly budgets and household expendi...
Read MoreSavers still unsure over ISAs
Savers are failing to maximise their money because they are wary of independent savings accounts (ISAs), it has been shown. A study conducted by Nationwide found that 62 per cent of the UK adult population do not currently hold an ISA, which offer higher rates of interest than standard accounts. The principal reason cited were lack of understanding of what are perceived to be complex investment pr...
Read More