Increased interest rates could cause savers to “fail” to get the best deals, according to a savings warning.
As banks and building societies grapple with the base rate hike, the new year has brought a flurry of better savings deals, but where should consumers look to ensure they don’t miss out?
Ford Money has raised interest rates on two of their accounts by 0.1 percent as markets become more competitive.
With the possibility of even more deals being announced soon, there are some places where Britons can get the best deals.
The last two years have been tumultuous for savers, but with the Bank of England’s decision to raise the base rate, 2021 ended on an unexpectedly positive note.
Banks and building societies were quick to include the increase in their debt and borrowing products, but savers are only now beginning to notice the effect.
The base rate was raised in December 2021 from 0.1 percent at the start of the COVID-19 pandemic, which was a record low.
The Bank of England’s base rate is currently 0.25 percent, slowly returning to pre-pandemic levels.
Ford Money announced an increase in its Flexible Saver and Flexible Cash ISA products on Wednesday.
Both products’ interest rates will be raised to 0.60 percent and 0.50 percent.
“We hope that by increasing the rates on our Flexible Saver and Flexible Cash ISA products, we are providing savers with a better rate for their money, as we all continue to tackle the challenges posed by the pandemic,” a Ford Money spokesperson said.
“At Ford Money, we make every change to ensure that we’re providing our customers with the most appropriate and competitive accounts available at any given time in the market.”
This appears to be a market-wide response, as savers have noticed a rapid increase in interest rates in just the first few days of 2022.
Many people have struggled to find savings accounts that pay more than 0.5 percent over the last year.
Furthermore, those that offered interest rates that were comparable to inflation frequently had a list of conditions and requirements that had to be met in order to receive it.
This includes Cambridge Building Society, which has an enticing five percent offer available only to existing customers who have been with them for three years.
The market’s average offerings have risen to around 0.60 to 0.70 percent.
“News from the Brinkwire.”