Rates are changing so fast, offline savers can’t keep up: Top deals only available for days before being slashed
- One savings bank boss said the savings market was ‘in a state of flux’
- It comes after NS&I announced it would cut its rates in November
- Top easy-access deals from building societies like Coventry and Skipton have lasted only days before being slashed and fixed-rate bonds disappear too
Older savers are missing out on hundreds of pounds in interest because they are not going online.
Savings account fire sales are fast becoming the norm, with one top rate available for just 24 hours before it was slashed.
It means customers who do not use the internet – often because of fears of fraud – don’t hear about the deals in time.
Savers who don’t use the internet are unable to keep up with the pace of change as banks change rates every few days
The big banks pay just 0.01 per cent on easy-access accounts while the top one-year fixed-rate bond is just 0.3 per cent on offer from HSBC and Barclays.
Online savers can pick up as much as 0.8 per cent on easy-access money with Principality BS Web Save 3, or 1.18 per cent fixed for one year with Atom Bank – but you need to act fast to get the best deals.
Online banks and building societies can quickly alter rates if money is coming in faster than they can lend it.
OakNorth Bank has changed its rates four times in little over a week.
Nick Lee, its head of regulatory affairs, says: ‘The savings market is in a state of flux following the cut in the rates paid by National Savings & Investments. Banks are adjusting their rates on the back of this.’
The bank’s very top rate of 1.31 per cent on sale last month lasted for just 24 hours before falling to 1.26 per cent.
It now stands at 1.06 per cent following a further cut for new savers. Paragon Bank’s 1.3 per cent and Aldermore Bank at 1.26 per cent were on sale for only a few days.
Top easy-access accounts are also short-lived. Skipton BS Online Bonus Saver sold out in three days after interest-starved savers piled into the account paying 1.2 per cent.
The society’s E-Isa Saver at a top 1 per cent was also withdrawn from sale after just four days. It has now halved the rate for savers opening an account to 0.5 per cent.
Coventry BS Double Access Saver (Online) launched at a rate of 1.2 per cent but after four days was replaced by a new issue at a lower 1.1 per cent.
That quickly sold out too, and the rate fell to 1.05 per cent for new savers. Yesterday it went down again to 0.96 per cent.
The account suits those happy to limit their withdrawals to just two a year rather than have access to their money at any time.
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