Savers urged to 'review their accounts' amid 'falling interest rates'
Britons are being urged to review their bank accounts
GETTY
Savings accounts are being hit by "falling interest rates" but experts are citing that cash ISAs are continuing to offer competitive returns for bank customers.
The era of high savings interest appear to be coming to an end but analysts are urging Britons to check the rates attached to their accounts.
Based on Moneyfactscompare's analysis, the average easy access rate jumped month-on-month to 3.14 per cent.
In comparison, the average notice rate increased to 4.30 per cent, 1.16 per cent more than the average easy access rate.
Notably, the average easy access ISA has risen month-on-month to 3.36 while the average notice ISA equivalent has gone up to 4.22 per cent.
As such, ISA products are continuing to offer better returns for savers as opposed to traditional accounts.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Savers are looking for the best deals
GETTYSimilar changes to rates can be seen when looking at fixed rates bonds.
The average one-year fixed bond rate dropped to 4.63 per cent, while the average longer-term fixed bond slipped to 4.13 per cent, according to Moneyfactscompare.
Comparatively, the average one-year fixed ISA rate went up to 4.46 per cent and the average longer-term fixed ISA rate remained at 4.08 per cent.
As such, the difference in interest rate between the average one-year and longer-term fixed bond stands at 0.38 per cent.
Rachel Springall, a finance Expert at Moneyfacts, broke down the current state of the savings market.
She explained: "Savers will no doubt be concerned over falling interest rates due to the 0.25 per cent cut to the Bank of England base rate, but our savings trends that were observed prior to the cut revealed an interesting split in how providers were re-adjusting their market positions with rate tweaks prior to the announcement.
"Over the past few months, fixed rate bonds and Cash ISAs have been on the downward trend, largely due to the markets expecting future interest rates to come down.
"Despite the rate cuts since the start of 2024, the availability of products has been on the rise, and as we noted last month, product count is at its highest level in over 12 years.
Earlier this month, the Bank of England slashed the base rate from 5.25 per cent to five per cent as inflation concerns eased.
This has resulted in high street banks and building societies beginning to reduce rates attached to their accounts.
LATEST DEVELOPMENTS:
Earlier this month, the Bank of England voted to cut interest ratesGETTY Springall added: "“It will be interesting to see how both the average rates and overall product availability will be impacted by the base rate cut in the coming months.
"This would be a great opportunity for savers to review their accounts and switch if they feel they are not being rewarded for their loyalty.
"Savings providers will need to work hard to ensure they are offering their customers a fair deal and act quickly to adjust their market position against their peers.”
The central bank's MPC will next meet to discuss changes to the base rate on September 19.
You may like
