Santa comes early for savers

Analysis from moneysupermarket.com shows a flurry of activity in the savings market, with average rates on one year fixed rate bonds increasing by 0.11 per cent in two months, but savers need to be on their toes to take full advantage of these deals before they are pulled from the market.

Skipton Building Society recently launched a one year fixed rate savings bond with a market leading rate of 3.30 per cent, but have since dropped the rates on this product twice in two weeks to 3.05 per cent. This highlights just how quick savers have to be to take full advantage of the top products in a competitive marketplace.

Kevin Mountford, head of banking at moneysupermarket.com, said: "Traditionally this time of year is known as the ‘silly season' in the banking industry, as providers rush to introduce competitive new products to the market in an effort to attract new customers and plug any deposit shortfalls. These deals do not last long though, as demonstrated by the recent example of Skipton Building Society, who pulled their market leading fixed rate bond after just a few days due to its popularity, so if you see a rate that is attractive, you need to grab it now.

"Consumers may find that with the recent resurgence in the easy access market there are equally competitive deals available, such as Nationwide's MySave Online easy account paying 2.99 per cent. The benefits of opting for an easy access product are that consumers do not have to lock away their money for a fixed period of time.

"The popularity of new products coming onto the market demonstrates the appetite among savers to find ways to generate better returns on their savings, which have been battered by high inflation and rising living costs. Consumers should keep monitoring the savings products market and ensure they are getting the best deal and earning the most bang for their buck.