Savings rates are rising rapidly but don’t let inertia eat into your returns, says SIMON LAMBERT… here’s how our new alerts can help

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Savings rates are rising rapidly and have reached levels not seen in many years.

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The best easy-access savings rate breached 2 percent – a deal from Al Rayan Bank at 2.1 percent – and the top one-year fixed rate from BLME now pays 3.4 percent.

Chances are you haven’t heard of either of these banks, but they are fully FSCS protected, so savings of up to £85,000 are covered by the compensation plan.


A name you may have heard of has made a surprising appearance on the tables of the top Cash ISA rates, however, Santander pays 1.85 percent on its easy-access tax-free account.

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Savings rates are rising fast and our alerts can let you know about the top deals as they land

By the time you read this, it’s likely a new contender at the top. This is Money’s independent Best Buy savings table; Compared to the paucity of good deals on offer in recent years, new top rates are coming in thick and fast.

That’s why we set up our new savings alert email service, where you can sign up to get stories on the best new savings deals sent straight to your inbox.

It’s free and we promise not to send you any junk, just stories about our picks of the best savings deals to help you earn more interest.

But savings alert emails are separate to our newsletter, so make sure you sign up for savings alerts using our sign-up box here.

Rising savings rates is the silver lining for many dark economic clouds right now – and rising interest rates aren’t good news for mortgageeers, but savers have long been waiting for them to rise.

The problem, of course, is that despite the knock on the door of 4 per cent of the top fixed rates – BLME’s five-year fix pays 3.75 per cent – they come nowhere close to matching inflation.

It fell by double digits to 9.9 percent in August, ONS’s CPI data revealed yesterday, but is still well above the return you can safely get on your cash.

In theory, savers were better off at the beginning of last year when inflation was 0.7 percent and the best savings rates were the same. This meant that they were losing less to inflation, reducing the spending power of their money.

Still, it’s far easier to get excited when rates are rising quickly and the best easy-to-access savings deals don’t start at 0. — and that’s good news because it’s more important than many years to transfer your savings. For the best possible deal.

You want to reduce the gap between your savings rate and the inflation rate as much as possible, and our savings correspondent Ed Magnus’s regularly updated guide to the best inflation-fighting savings accounts is your friend here.

However, there is a caveat that chasing the highest possible rate means a five-year fix and may not be worthwhile, as the difference between a one- and five-year fix is ​​not that big – just 0.35 per cent.

With interest rates forecast to rise, it can pay to give yourself the option, as you don’t want to lock up a huge amount only to find out that in six months’ time it looks like you’ve done so. Done very cheaply.

Ed addresses the question of what to do in this situation and save FOMO with his article Should You Wait for Savings Rates to Go Up or Lock Your Money?

It’s certainly worth asking yourself if you have money you can put off for five years, you should consider investing it instead. It’s a question we tackle here: As rates rise, is it better to save or invest?

Hopefully, the expensive Energy Price Guarantee Cap manages to keep a lid on inflation and it doesn’t get much worse from here. Fingers crossed, it also takes us all by surprise and keeps falling.

One final thing to consider is whether it’s worth signing up to a savings platform. These services, such as Raisin, Hargreaves Lansdowne Active Savings and Flagstone, let you manage your money across different accounts in one place. .

You won’t find the full range of deals that make the best buys in our entire market savings tables, but you will find a selection that challenges the top rates and sometimes beats them.

You’ll probably be less likely to succumb to inertia and let your savings pots fall at legacy rates, because you can easily see them and move them all in one place.

And this inertia can be the real killer when it comes to savings returns, as repeated studies show by many of us who allow money to slide on 0.1 percent payout accounts. Huh.

So make sure your savings are at the best rate – and sign up for those savings alerts.

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