Savings rates on the rise amid ISA decline - Move Your Savings To Better Rates

23rd June 2024

Billions of pounds are languishing in zero or low rate interest accounts and for long time it may not have mattered when interest rates were so low. More recently however thing have changed. So why not take a few minutes to move your savings to get a better rate.

Where do you start?

With inflation now seemingly under control, and average savings and ISA rates still above 3.00%, savers may only just be starting to see their pots grow in real terms after over a decade of meagre returns.

There are plenty of sites with advice.

Check out moneyfactscompare.co.uk for lots of details.

Beating inflation
When figures were released on Wednesday, there were well over 1,600 accounts that could better the rate of inflation and see your money grow in real terms. While the average easy access savings account and ISA paid 3.12% and 3.31%, respectively, at the start of the month, top returns in these sectors remain in excess of 5.00% AER. For instance, Ulster Bank's Loyalty Saver continues to pay a most competitive 5.20% AER on balances from £5,000 and is available to new and existing current account customers. Alternatively, those in need of a tax-wrapper will find the same rate offered by Trading 212's market-leading Cash ISA.

However, if you’re worried about the impact of a potential cut to the base rate on the savings market, you may be considering a fixed account. At 5.22% AER, My Community Bank’s Fixed Rate Savings offers the best rate for a one-year bond. To open and manage this account online, you’ll need a £1,000 deposit and must be a member of My Community Bank Credit Union. As for a slightly longer fixed term, Vanquis Bank pays 5.06% AER and 4.80% AER on its two and three-year Vanquis Bank Savings, respectively.

Meanwhile, Virgin Money continues to lead the fixed ISA market, with its 1 Year Fixed Rate Cash ISA Exclusive Issue 13 paying 5.05% AER.