Rough start to 2022 for savers as top deals vanish

The start of 2022 has seen some of the top rate deals vanish from the saving market, according to the latest analysis by Moneyfactscompare.co.uk. Indeed, since the start of January, both market-leading deals and several deals that placed in the top 10 have been withdrawn.

• Since the start of 2022, several easy access accounts, notice accounts, ISAs and fixed bonds which were market-leading or in the top 10 at the time have been withdrawn. There have been some deals returning since their removal earlier this month, but savers may need to act quickly to take advantage.
• Variable rate deals, including easy access accounts, appear to be hit the hardest by withdrawals. This comes just weeks after the Bank of England increased base rate by 0.15%. Savers could have secured a higher easy access and notice rate earlier this month than they could find today.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Savers will be disappointed to see some top rate deals vanish from sight, but this movement in the market reiterates how imperative it is for consumers to act quickly to secure a top deal. Challenger banks and building societies continue to offer some of the best returns in the market, but it appears to be quite a challenge for them to sustain those deals in the spotlight.

“Easy access accounts remain a favourable savings account for consumers who want flexibility with their cash, and the best rate we have seen this year came from Family Building Society at 0.72%. Savers may need to act quickly to take advantage of new arrivals as just last week we saw decent offers re-introduced to the market, including a 0.71% deal from Investec Bank plc which was withdrawn earlier this month. Clearly, there is still some competition in the market, but savers may not have long to grab such lucrative offers and sitting on the fence could see them miss out.

“As the Bank of England increased base rate by 0.15% in December 2021, many savers may be expecting to see this passed onto them, but sadly this hasn’t been the case over a month later for many and, as we have seen in the past, it may not even happen at all. There are several high street banks paying less than the current base rate of 0.25%, with some paying as little as 0.01%. Indeed, it’s clear to see why switching and reviewing a savings account is so vital, especially if a saver has their money stored in a linked savings account to their main current account for convenience.

“If we do see market-leader savings rates surface, keeping a close eye on the top rate tables and signing up to rate alerts is essential to keep in tune with market volatility and to avoid the disappointment of missing out on an attractive rate. It is expected that we will see even more base rate rises in 2022, and if providers fail to pass this on, savers would be wise to reconsider their loyalty and switch.”