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
Offshore tax deadline proves a busy time
HM Revenue and Customs has revealed there has been a last-minute rush from UK taxpayers who hold funds in offshore bank accounts which have not been declared to the Revenue. Those with undeclared bank accounts overseas had until 17:00 hours GMT to come forward and confirm that they were willing to cover any unpaid tax bills. The Revenue believes the campaign will bring in over £500 million from f...
Read MoreShould UK savers be asked to bail out the UK economy?
Over the last 24 hours the Bank of England has indirectly issued a number of potentially controversial comments regarding UK savers and the fact that they should be spending their savings rather than looking to the future. This comes during a period that has seen UK savers put under extreme pressure, feel unwanted and ultimately many have had to dip into their savings to get by. At a time when UK...
Read MoreSavers on the back foot as spending power reduced
With UK base rates still at 0.5%, although likely to move higher in the short to medium term, savers in the UK were dealt a further blow today with news that inflation has jumped to 2.9% in December. This effectively reduces the spending power of money in the bank with savers unlikely to attract interest rates in excess of 2.9% at this point in time. So while in simple terms they may be receiving...
Read MoreCan you remember your savings rate just 12 months ago?
As the situation for UK savers continues to deteriorate it would appear that many savers in the UK are completely unaware of their current savings rates and the rate they received prior to the onslaught of the recession. Despite the fact that professional financial advisers are constantly monitoring rates and offers in the market place it would appear that the vast majority of UK savers are happy...
Read MoreTemporary saver protection could be increased tenfold
The Financial Services Authority has today tabled a motion which could effectively see a temporary increase in saver protection limits from £50,000 to £500,000. While the move has not been ratified as yet it seems likely we will see the introduction of short-term protection for those who have sold a large asset such as a home. How long the extended protection would last remains to be seen but it...
Read More