Many banks are still offering savings rates in excess of inflation after December’s slight jump in the consumer price index (CPI), but such opportunities may not last forever, experts say.
Following the rise in inflation from 3.9% to 4.0% in December, comparison site Moneyfacts said there are still 967 savings accounts which offer rates above the figure.
This is compared to over 1,100 accounts last month, prompting Moneyfacts experts to warn savers to act quickly to take advantage of the best rates or risk missing out.
“Providers are often able to offer very competitive deals,” spokesperson James Hyde said.
“However, their readiness to pull top rates once targets have been hit means it’s imperative to strike while the iron is hot to secure the best deal.”
NatWest Group PLC (LSE:NWG) subsidiary Ulster Bank offers the best easy access rate at 5.20%, Moneyfacts pointed out.
Challenger banks FirstSave and SmartSave then offer the most on notice and fixed-rate bond accounts respectively, at as much as 5.40% and 5.31%.
“Despite many providers across the sector significantly cutting rates in recent weeks, challenger banks have continued to occupy the top positions in the charts,” Hyde noted.
Banks’ tweaks to savings offerings have coincided with a rapid reduction in mortgage rates, as the prospect of cuts to base interest by the Bank of England grows.
Metro Bank Holdings PLC (LSE:MTRO) and TSB Banking Group (LSE:TSB) have been among the lenders to reduce rates on mortgage deals this week as a result, with MortgageShop.com advisors noting NatWest had not been cutting such costs in line with larger lenders.