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It is no longer possible to find a fixed-rate savings account paying above 6%. Photograph: Dominic Lipinski/PA
It is no longer possible to find a fixed-rate savings account paying above 6%. Photograph: Dominic Lipinski/PA

UK savers urged to act quickly for best returns as rates drop

This article is more than 5 months old

NS&I, Shawbrook and Tandem among providers to make reductions amid flurry of such moves

Savers have been urged to act quickly if they want to get the best returns on their money after a flurry of interest rate cuts on top-paying accounts.

This week NS&I reduced the rate it offers on its three-year green bonds from 5.7% to 3.95%, while Shawbrook, Tandem and Ford Money were among other providers making cuts.

One standout account has bucked this trend. Last week, Metro Bank increased the rate on its Instant Access Savings account to 5.22%, including a 3.46% bonus for the first 12 months. The account can be opened online or in a branch, and to get the bonus you must pay in at least £500 within 28 days.

Falling inflation means that savers can now achieve an interest rate that outstrips rising prices.

It is, however, no longer possible to find a fixed-rate savings account paying above 6%, and experts said that the best deals may be quickly fully subscribed.

“Savers will no longer find a bond that pays more than 6% but it is worth noting that challenger banks are still holding the top spots despite shuffling positions,” said Rachel Springall, a finance expert at Moneyfactscompare.co.uk.

“These institutions can launch enticing offers to attract deposits for their future lending but they also act quickly to pull offers when they become fully subscribed. Consumers will need to act quickly to grab the top deals on offer and consider the more unfamiliar brands when comparing deals.”

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