Easy Access Market Hots Up

Published:

03/07/2009

Topic:

Press Release,Savings

Easy access savings accounts have been the poor relation for some time now, with providers having been focusing on fixed rates and Cash ISAs this year. But the battle for new savings customers has moved to the easy access market, with a number of new launches and rate increases having been seen in recent weeks.

Coventry Building Society has today launched account for the over-50s - eSave - paying a market-leading rate of 3.25 per cent. Unlimited penalty-free withdrawals are allowed although the rate is fixed for 12-months. Five other easy access accounts have launched in the past three weeks. Another five providers have increased the rates offered on existing easy access accounts.

Kevin Mountford, head of banking at moneysupermarket.com, said: "This level of activity is unusual given the Bank of England base rate hasn't changed since March. But it's great news for savers, particularly those who don't have money they can afford to lock away in a fixed rate account.

"Providers are still desperate for our cash so the competition is likely to remain strong for some time to come. Until the last few weeks, banks and building societies had focused on fixed rates and Cash ISAs, with these products the most searched for on moneysupermarket.com but the tide is now turning.

"It's incredible to see easy access accounts with rates more than 3% higher than the base rate and savers really should be looking to take advantage.

"There are features you need to watch out for though such as introductory bonuses and withdrawal restrictions - make sure you're aware of these, and in the case of bonuses, be prepared to move your money again once the introductory period ends."

Recent Easy Access saving accounts launched

Provider	Account	AER
Coventry BS	eSave	3.25%
Nottingham BS	Postal Access 50	3.15%
Birmingham Midshires	Telephone Extra	3.15%
Leeds BS	Online Instant Access Account	3.05%
Principality BS	e-Saver 2	2.85%
Egg	Savings Account	2.80%
Sourced by www.moneysupermarket.com 01.07.2009

Recent Easy Access saving accounts rate increases

Provider	Account	AER
Coventry BS	Poppy Save	3.00%
Ulster Bank	eSavings Plus	3.00%
ING Direct	Variable Rate Savings Account	3.00%
Intelligent Finance	isaver	2.85%
Sainsbury's Bank	Internet Saver	2.80%
Sourced by www.moneysupermarket.com 01.07.2009

- ENDS -

 

Download This Press Release

Download as RTF

Related Links

Related Resouces