Savings rates are struggling to rise above one percent at the moment as the Bank of England keeps the base rate at 0.1 percent. Despite this, banks and financial firms are regularly adjusting their offers to entice customers and today, Moneyfacts highlighted three options for savers.
Additionally, Hampshire Trust Bank has improved its 95 Day Notice (Issue 11) account, as Ms Williams continued: “Amongst various updates to its range of savings products this week, Hampshire Trust Bank has increased the rate on its 95 Day Notice account.
“Following an uplift of 0.05 percent, this account now pays 0.85 percent on anniversary, an update which propels the account to the lead position in our top rate tables when compared to other notice products currently on offer.
“Investors who are happy to plan ahead and provide advance notice if they want to access their savings could well be tempted by the return as, whilst instant access is not possible, with 95-days notice withdrawals are permitted.
“Additionally, this account could also be suitable for those who wish to be able to contribute further deposits and build their nest egg. On assessment the account earns an Excellent Moneyfacts product rating.”
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For those looking for digital banking options, Tesco Bank may offer the best option.
Ms Williams concluded on Tesco Bank’s Internet Saver account: “Amongst the accounts from Tesco Bank to receive a rate uplift this week is the Internet Saver which has increased from 0.41 percent and now pays a rate of 0.50 percent yearly (inclusive of 0.40 percent bonus rate for 12-months) which sees it retain its position in our top rate tables.
“For those who wish to maintain both flexible access to their money and to also have the option to add to their savings pot when possible, this account may now be a tempting offer as both easy access and further additions are permitted and unrestricted.
“However, the bonus rate will expire after 12 months, so investors may want to schedule in a review around then as the rate will drop. Overall, this account receives an Excellent Moneyfacts product rating.”
deVere’s results are supported by official UK figures. According to the Office for National Statistics, the saving ratio – which estimates the amount of money households have available to save as a percentage of their total disposable income – climbed to 19.9 percent from 16.1 percent, reaching the second-highest level since records began in 1963.
On the findings, James Green, a Regional Manager of deVere Europe, commented: “Many people have experienced financial worry and insecurity over the last 16 months.
“However, others – primarily those who were able to successfully work from home, maintained income levels, or benefitted from the Government’s furlough scheme – have accumulated more savings than they typically would have done due to the severely curtailed opportunities to spend.
“The lack of travelling, non-essential shopping, going out and undertaking leisure activities have contributed.
“The vast majority of those who took part in this poll are in social grade ABC1, who mostly do professional work and who are more likely to have been able to work remotely, and have been able to save the most.
“Follow-up polls indicate that since the beginning of the easing of lockdown restrictions, a growing number of people are planning to spend part of their savings, or already have done so.
“With people confined to their homes for much of the year amid various pandemic lockdowns, it’s perhaps to be expected that much of these excess savings will be spent on home improvements such as extensions, home-gyms, pools, outhouses, home-cinemas, roof repairs, a redeveloped garden, redecoration and/or new furniture.”