COMPARE ISA RATES OR SAVINGS ACCOUNT RATES…BOTH WILL DISAPPOINT YOU.
If you’re looking for a home for your savings, the interest rate rise back in November probably had you breathing a sigh of relief. Surely this was a sign that finally, long-forgotten savers would be able to see some reward for being smart enough to put money aside?
Unlike borrowers, who instantly saw their payments increase as banks and building societies passed on the rate rise, savers have seen little change in the interest they earn.
In fact, the average rate on easy access savings accounts crept up by just 0.06% after the base rate rise, hovering around the 0.45% mark. As Charlotte Nelson from Moneyfacts, the data monitor service said “The figures prove many providers have failed to pass on the full rate rise on their accounts.”
Moneyfacts’ monthly Savings Treasury Report also highlights another worrying fact: the number of accounts paying above the base rate of 0.5% is now less than seven out of ten, the lowest figure for five years.
And if you think opting for one of the ‘best buy’ easy access accounts would be a smarter move, think again. They all pay around 1.3% interest currently – better than base rate certainly, but with the December Consumer Prices Index (CPI) figures showing inflation has risen to 3.1% your savings would lose value at an alarming rate.
However, for savvy savers, it’s not all doom and gloom. There are still ways to invest your savings – or switch from existing poor-performing ISAs – through an intelligent ISA.
In the Know is a specialist who can introduce you to regulated ISA experts who will review your options, without any commitment or cost. So if you have savings to invest and feel that may interest you, just follow this link to find out more.