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Is it worth putting savings into a prize draw

UK savers given hope as interest rates edge up from all-time lows

“The house-buying frenzy has brought fresh hope for savers. Banks need more cash to back their mortgage lending, so they have been forced to boost savings rates,” she said. However, these (slightly) better rates are mainly confined to fixed-rate savings accounts, where you typically have to tie up your money for a year or more. The uncertainty created by the coronavirus pandemic means many savers want their spare cash sitting in accounts they can access very quickly, and with billions of pounds flowing into these, there is little incentive for banks to offer better returns on them. This may help to explain why, according to the data provider Moneyfacts, the average easy access account rate remains at a record low of 0.16% – down from 0.4% a year ago and 0.62% in May 2019.

The Best Savings Rates This Week 21 5 21 | moneyfacts co uk

Share With inflation rising to 1.5% in April, savers will be disappointed to see that, despite some higher rates entering the charts, just one seven year fixed rate bond that pays interest on maturity can currently beat the rate of inflation. As well as this, although saving rates have picked up over the last couple of weeks, there is uncertainty about whether rates will continue to rise, especially with the Bank of England base rate currently holding at 0.1%. As such, savers looking to get the best rates should consider acting quickly as providers can withdraw or reduce rates at any time.

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