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Two-thirds of all changes remain on fixed rates, with bonds requiring a two or
three-year commitment seeing the biggest cuts of up to 0.5pc. However, it
hasn’t been all bad news, with a handful of providers launching best-buy
fixed-rate accounts.
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The variable rate market has also seen more positive activity, particularly
with online-operated accounts, where the lack of branch overheads is passed
on to savers through higher rates. At 1.01pc, the average rate for an
online-operated easy access account is nearly double the 0.54pc average on a
branch-based account.
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With the FTSE 100 being so volatile, many savers are moving back to the
security of cash savings. Figures released by the Fair Investment Company
this week show that in the past three months, deposits into its cash deposit
accounts rose by 275pc.
Best-buy bonds
In recent months Northern Rock has kicked off a range of competitive deals in
order to maintain savers’ deposits after the loss of its 100pc depositor
protection. Its latest bonds are no exception, with the one-year bond paying
a market-leading rate of 3pc. Two, three and five-year bonds are also
available. Savers can invest up to £2m into the bonds, with further
additions permitted while the bond remains open. Earlier access is not
permitted.
A spokesman for Northern Rock said: “We have listened to our customers
and have designed these products with them in mind. We always aim to provide
attractive products and compete effectively within the market place, while
being mindful …
Read the original article at Telegraph
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Tags: account, buy, cash, company, deal, deposits, finance, Fixed Rate, pay, savings, UK
