Average variable and fixed savings rates stabilized in June, marking the first time in more than six months that providers have not reduced the basis points of their offerings.
Moneyfacts’ UK Savings Trends Treasury report found that all average savings rates rose or remained unchanged month-to-month, the first time this has happened since October 2020.
The average notice rate, the rates on one-year fixed bonds and the rates on longer-term fixed bonds increased month over month, and the average rates of easy access, easy access Isa, notice and Isa fixed at one year and longer term remained unchanged during the month. -on-month.
Good news for savers
Rachel Springall, Financial Expert at Moneyfacts, said: “It is incredibly encouraging for savers to finally see stabilization across the entire savings spectrum after months of cuts. Clearly, there is room for improvement, but it is positive to see some rates and levels of choice moving away from all-time lows. “
Easy Access Accounts and Easy Access Isas are still languishing at record rates.
The current average easy access rate of 0.16% is 0.46% lower than in June 2019, reflecting the effect of the pandemic and the Bank of England rate cuts it has brought on.
Despite dismal returns on cash accounts, savers are still hiding their money with a whopping £ 11.6bn deposited in April according to the latest Bank of England figures, around £ 51bn so far This year.
“The challenger banks have made notable improvements to fixed rate bonds, which has resulted in an improvement in average rates on the one-year and longer-term fixed bond sectors for the second month in a row,” Ms. Springall said.
“Savers who are reluctant to tie up their money for too long can still consider a one-year bond and over the past month rates have improved slightly, but it should be borne in mind that the average of 0.48% is about half of the average. 0.86% seen a year ago.
She added: “The rejuvenation of the savings landscape is going to take time and providers still have the challenge of keeping up with savers’ money and can always withdraw from transactions or change rates if they become saturated with deposits. to deter investors.
“Savers would therefore be wise to stay on top of market developments by signing up for rate alerts or newsletters and considering less familiar brands to find some of the best rates available. Switching is still vital and now is a good time for a quick rate comparison now that stability is returning. “