Savings account rates plummet yet we’re better off than last year, or so it seems.

Nov. 27, 2012 - PRLog -- This time last year, inflation (CPI) was a shocking 4.80% (November 2011) and the average rate of the best buy easy access accounts was paying 3.08% gross compared to 2.45% today. Last year non taxpayers were unable to open an easy access OR notice account to match inflation.

Right now Cash ISAs are a beacon in an otherwise gloomy savings landscape. Last November the best cash ISA was paying just 3.05% - that’s 1.75% LESS than CPI. Today the Coventry 60 Day Notice ISA is paying 3.25% - that’s 0.55% MORE than CPI. Now that’s good news!

SavingsChampion.co.uk - the (not so) secret weapon against dreadful interest rates

The reason that we set up savingschampion.co.uk last year was simple. British savers get a poor deal and they need help sourcing and keeping the best interest rates - all the time. So we decided to champion savers!

This year has been no exception and it’s been tough to ensure you’re on the best rates.

Our free Rate Tracker is the saver’s not-so-secret weapon.  Simply enter basic details of your savings accounts - provider, account name and balance - and we’ll let you know if your rate changes and when better deals appear.

We’ve got everyone covered from the newest banks like Aldermore and Shawbrook, to savings giants including Lloyds, NatWest, HSBC and Santander - National Savings and Investments too.  

Rate Tracker users simply do better – the average easy access rate is 0.74%* but the average easy access rate that our Rate Tracker customers are earning is 2.47% gross.

Onwards and upwards – new and improved services

In addition to keeping up with all the rate changes (which has been no mean feat – that’s for sure), we’ve also made some improvements to the services we offer, including introducing our Cash Management Service – Rate Tracker Concierge. (https://www.savingschampion.co.uk/rate-concierge/)

For savers with £100,000 plus, the Concierge Service provides a fully managed service, to help take the hassle out of opening and managing multiple savings accounts.

We tailor each portfolio to meet an individual’s objectives for maximum return, accessibility and security (FSCS limits). We then monitor the rates for improvements as needed and then take care of the paperwork, where possible.

For a small fee (0.20% of the portfolio value per annum subject to a minimum of £295), our customers can sit back and relax safe in the knowledge that we will research, choose, monitor and manage their savings portfolio for them.

One customer was earning just 0.65% AER on his £200,000 cash (not unusual) but his new portfolio is now earning 3.38% gross/AER – that an extra £5,460 pa gross. Click here (http://www.savingschampion.co.uk/rate-concierge/) to read some of our clients’ testimonials.

We have also launched our free Rate Alert (https://www.savingschampion.co.uk/newsletters/rate-alerts/) service which helps savers to keep up with the release of new savings products and interest rate changes as they happen in the whole market.

And that’s not the end of the new and improved services you’ll see from us, we’ve got plenty more ideas coming to fruition over the next few months, so watch this space.

THE STATS BANK

Bank of England Base Rate: 0.50%

Inflation figures: CPI - 2.70%, RPI - 3.20%

Rate needed to beat CPI inflation = Basic rate tax – 3.38% / Higher rate tax – 4.50%

Number of accounts that match or beat inflation for a basic rate taxpayer =

·          Easy Access – 0

·          Notice Accounts – 0

·          Cash ISAs – 48

·          Fixed rate bonds – 1 in total (5 year bond)

Rates Rundown

(summary of Rate Alerts over the last week)

The AA has withdrawn its best buy 3 Year Fixed Rate Bond paying 3.30% AER/gross, replacing it with a lower rate of 2.70% AER/gross.

Saga has reduced the 2 Year Fixed Rate Bond from 3.10% to just 2.40% gross/AER and the market leading 3 Year Fixed Rate ISA 3.30% to 2.75%. Whereas the 1 Year Fixed ISA have been withdrawn from sale.

Post Office has withdrawn its Reward Saver account paying 3.00% gross/AER, it’s 1 and 2 Year Fixed Rate ISAs paying up to 3.00%AER/gross and its variable Premier Cash ISA paying 3.01% AER/gross.

Kent Reliance Banking Services (KRBS) has launched a 2 Year Fixed Rate Bond paying 3.10% gross/AER, a 1 Year Fixed Rate ISA paying 3% tax free/AER and a 2 Year Fixed Rate ISA paying 3.10% tax free/AER.

Close Brothers Savings has launched a best buy 3 Year Fixed Rate Bond, Select Gold 3 Year Product paying 3.30% gross/AER.

Santander has reduced the rates on its Direct ISA and Branch Saver accounts. The Direct ISA Issue 13 is paying 1.75% tax free/AER (including a 1.25% bonus for 12 months), reduced from 2.50% tax free/AER for Issue 12. The Branch Saver (Issue 3) is now also paying 1.75% gross/AER (including a 1.25% bonus for 12 months), reduced from 2.30% gross/AER for Issue 2.

Intelligent Finance has withdrawn its current products; isaver, Direct Access Savings and Cash ISA.

Derbyshire Building Society has launched NetSaver – Issue 8 paying 2.20% gross p.a./AER* (variable), including a fixed bonus until 28 February 2014.

West Bromwich Building Society has withdrawn its WebSave Easy Access Issue 5 Account paying 2.52%AER/2.20%gross. No replacements as of yet.

Nationwide launches new Loyalty Saver Issue 2 paying 2.40% AER/Gross p.a for 15 years plus and MySave Online Plus Issue 11 paying 2.20% AER/2.18% Gross.

The Nottingham Building Society launched the branch based fixed rate regular savings account Celebration Saver paying 6.00% AER/gross until 30/11/13.

Notes to editors:

* Source: SavingsChampion.co.uk – average live easy access account (before tax), November 2012

ENDS

About SavingsChampion.co.uk:

SavingsChampion.co.uk is dedicated to savers and savings accounts with the aim of producing a straight talking and simple to use site that is totally independent, completely unbiased and whole of the market.

SavingsChampion.co.uk monitors the whole UK savings market of over 4,000 savings accounts and 9,000 savings interest rates daily and via the unique free Rate Tracker service monitors movements in all registered users’ savings accounts.

SavingsChampion.co.uk is available for expert comment on a range of savings queries so please feel free to call.  SavingsChampion.co.uk is happy to help where possible and holds a variety of statistics on all types of savings accounts so can run reports on request.  If you publish content about savings accounts and would like to be included on the immediate list for press releases please email info@savingschampion.co.uk

SavingsChampion.co.uk provides a free Rate Alert service, which helps savers to keep up with the release of new savings products and interest rate changes as they happen in the whole market.

SavingsChampion.co.uk provides a fully managed savings portfolio service, Rate Tracker Concierge for a small fee for savers with £100,000+

For more information:

Anna Bowes: 0800 3213581 / 07887 481149 anna@savingschampion.co.uk

Susan Hannums: 0800 3213581 / 07887 998 984 susan@savingschampion.co.uk (mailto:susan@savingschampion.co.ukn)