Savers are being urged that switching accounts is an 'essential' move now as top interest rates increase month-on-month. While the successive Bank of England's Base Rate rises have led to savings rates soaring, research suggests that a significant amount of Britons are not making the most of this advantage. Rachel Springall, finance experts at Moneyfactscompare.co.uk, said: Of course, less than a third of the savings market pays above the base rate. And there are even some easy access accounts paying just one percent. savers must discontinue and switch if loyalty is not being rewarded.
On August 16 when the last CPI inflation rate was announced, Cynergy Bank was leading the pack with an AER of 4.8 percent. Paragon Bank storms ahead with a top AER of 5.05 percent Delving into the top fixed-rate interest rates, Moneyfacts said OakNorth Bank was offering the highest AER for one-year fixes at 6.02 percent last month. This month, NS&I tops the list in that category with an AER of 6.2 percent. Springall said that cash is in real terms, so it's essential they take time to ensure their account is offering a competitive return on their investment. It will allow savers to take advantage of higher returns but also ensure that they retain a portion of their cash in case of an emergency, he said. However, based on demand, some market-leading accounts could be pulled from sale, so quickness is crucial.
Springall said the ISAs are not to go unnoticed, as providers have been particularly active this month with several improvements made across easy access, notice and fixed rates. Shawbrook Bank offered the highest rate at 4.43 percent compared to the market-leading easy access ISAs on August 16. Moneybox tops the table with an AER of 4.75 percent today. For fixed ISAs, interest rates are hitting as high as 5.8 percent with Virgin Money's one-year product, whereas last month Santander's highest rate was at three percent.
Springall said the PSA has been a useful allowance, but some savers could breach it, so an ISA may be worth considering. There are even deals that offer flexible ISA rules and some providers that allow investors to partition their ISA allowance across different options within their product range. She added: 'S imperative they pick an account that suits their personal circumstances and take note of deals on offer from the more unfamiliar brands.