Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25
Stocks, Bitcoin and Crypto's Under President Donald Pump - 8th Feb 25
Transition to a New Global Monetary System - 8th Feb 25
Betting On Outliers: Yuri Milner and the Art of the Power Law - 8th Feb 25
President Black Swan Slithers into the Year of the Snake, Chaos Rules! - 2nd Feb 25
Trump's Squid Game America, a Year of Black Swans and Bull Market Pumps - 24th Jan 25
Japan Interest Rate Hike - Black Swan Panic Event Incoming? - 23rd Jan 25
It's Five Nights at Freddy's Again! - 12th Jan 25
Squid Game Stock Market 2025 - 5th Jan 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Santa Claus…. Where’s My Interest?

Personal_Finance / Savings Accounts Dec 15, 2015 - 12:05 PM GMT

By: MoneyFacts

Personal_Finance

Data from Moneyfacts.co.uk can reveal that rate reductions in the savings market are now outweighing rate rises for the first time since daily rate change monitoring began.*

In the month of November, Moneyfacts recorded 36 savings rate rises, with only one deal posting a significant increase of 0.80%. Disappointingly, these rises were eclipsed by the 73 rate reductions that took place over the same period, with some rates falling by a massive 0.86%.


On the other hand, savers’ precious funds won’t be greatly affected by inflation: inflation statistics released today show that the Consumer Prices Index (CPI) increased from -0.1% to 0.1% during November, which means they have little to worry about in terms of savings erosion. Unsurprisingly, all of the 879 savings accounts currently on the market can beat or match inflation, and of these 732* (133 no notice, 72 notice, 313 fixed rate bonds and 207 cash ISAs) are without restrictive criteria*.

Savers who invested £10,000 back in 2010, however, will have suffered dearly from the damaging effects of high inflation, tax deductions and low interest rates of the following years. Based on the average easy access savings rate and average inflation and tax at 20%, their spending power will have dropped to just £8,889 today.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:“The savings market is certainly lacking Christmas cheer this year - the multiple rate increases we’ve been enjoying recently have now become a thing of the past, with many providers cutting rates to keep themselves out of the Best Buys. Savers are therefore fighting an uphill battle to get a great savings account, with many of the bigger banks simply turning their backs on savers’ money.

“As a result, the FCA wants to not only highlight the worst paying accounts but also force providers to prominently display customers’ rates on all correspondence. It’s hoped that this will raise savers’ awareness and motivate them to switch to more competitive accounts. However, these measures are not likely to give providers much incentive to offer better rates; instead, the onus is placed on the saver, who must switch accounts to get a better deal.

“There has been some good news, however. First-time buyers trying to save for a house deposit have had their dreams bolstered this month by the launch of the Help to Buy ISA. With some accounts offering interest of up to 4% as well as benefiting from bonus money from the Government, these deals beat all of their market competitors.

“Other savers will need to look towards the unfamiliar to achieve decent returns, as challenger banks appear to be the only providers with the appetite for savers’ funds. Anyone sitting with an account paying next to nothing shouldn’t put up with it. Instead, they should move their money elsewhere and get the returns they deserve.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in