Savings market is finally starting to show the green shoots of recovery

17th August 2015


Savers are being offered some respite from paltry returns on their cash as interest rates edge higher across easy-access accounts.

Research from savings site has highlighted that the market is finally starting to show the green shoots of recovery chiefly as a result of the appearance of new challenger banks.

On the flip side however, savers need to be on their guard as the number of accounts that offer limited access to funds is increasing.

Charlotte Nelson, finance expert at, said: “The challenger banks have certainly shaken up the market, with many launching deals that head straight to the top of the easy access Best Buys charts. This has caused the average rate for the top 10 accounts to increase from 1.39% a year ago to 1.48% today, which is not only promising but restores hope in the savings market.

“The easy access – or no notice – account is a savings staple for many people, so it’s great to finally see the light at the end of the tunnel in terms of available rates.”

But while this news should cheer savers looking to maximise their returns, some may be disappointed to find out that many accounts are now limiting access to their funds, with restrictions varying from a maximum of 150 withdrawals per year to just one.

“It’s a misconception to believe that no notice accounts always allow easy access to funds – in truth, all it means is that savers are not required to give notice before making a withdrawal. Any saver going over the agreed withdrawal limit will therefore be penalised with closure of the account or a penalty in the form of lost interest or a fee,” added Nelson.

She advised that to avoid issues and heartache, savers must make a note of any restrictions on their chosen account and make sure that all withdrawals made are absolutely necessary.

Nelson added: “These restrictions seem particularly harsh considering that many savers use their easy access pot as a way to save emergency cash. However, with many great deals out there, savers may find that they can get a better rate without having to resort to a restricted no notice deal.

“Perhaps it’s time the FCA started to look more closely at these restrictive accounts – transparency will only go so far after all.”






Average easy access rate





Average rate of the top 10 easy access accounts





Top paying easy access rate





Number of accounts with withdrawal restrictions





Source:     Compiled: 17.8.15


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