If I ask you to do one thing this week, it’s to make the essential check on the interest rate of your savings account to make sure it is still fit for purpose.
That’s because rates on easy-access accounts – both cash Isas and standard – have been on the move.
Some providers have been slashing rates after last month’s cut by the Bank of England, and others have come out with new accounts. The top rates stand at around 4.5 per cent, while the worst is down at a terrible 1 per cent to 1.2 per cent.
It’s particularly important to check if you have snapped up a top paying account in the past. Let me take you back to this time last year when rates on standard easy-access accounts edged over the 5 per cent mark.
Your rate might not look as good now, especially if you signed up for an account which boosted your rate with a bonus for a year.
Do also be aware that banks and building societies have a habit of launching accounts with the same name as a previous one, but with a different issue number and rate.
As a result, you have to pinpoint exactly what issue you are in to find out if your rate is still decent.
Failing accounts: Some providers have been cutting rates on easy access accounts – both cash Isas and standard – following last month’s cut by the Bank of England
You may discover that your old account pays more than the provider gives new customers. You may find it is paying less – in which case you can switch to the newest issue for a higher rate, or move provider.
The 5 pc plus rate you could earn last year is no more. Rates have fallen with the Bank of England base rate down from 5.25 per cent to 4.5 per cent.
The accounts where the rate was boosted by a bonus have fallen sharply as the bonus runs out. Among the leaders a year ago were
Tandem Instant Saver at 4.9 per cent including the bonus, Cynergy Bank Online Easy Saver (issue 69) at 5.1 per cent and Cahoot Sunny Day Saver at 5.2 per cent on up to £3,000.
Now Tandem account holders get 3.9 per cent without the bonus, Cynergy 3.2 per cent and Cahoot Sunny Day Saver 1 per cent.
Others have launched issues of their accounts at different rates. A year ago, Charter Savings Bank Easy Access issue 49 was at 5.08 per cent, Kent Reliance Easy Access issue 68 at 5.07 per cent and Virgin Money Defined Access E-Saver issue 21 at 5.06 per cent.
The Charter Savings Easy Access issue 49 now pays 3.78 per cent but by switching to the issue on sale now (issue 57) you can boost your rate to 4.53 per cent.
It’s the same with Kent Reliance – issue 68 is 3.81 per cent but the one on sale (issue 77) pays 4.55 per cent.
Some pay better rates to existing customers than new ones. Virgin Money Defined Access Saver issue 21 on sale a year ago paid 5.06 per cent.
The rate now is 4.51 per cent and that is better than the rate on offer to new savers (issue 30) at 4.06 per cent.
If you have issue 16 on sale from two years ago, you must move. Your rate is just 1.75 per cent.
Shawbrook Easy Access Issue 37 on sale at 5 per cent last year now pays 4.15 per cent.
That’s better that the issue (number 41) on sale now at 3.85 per cent. But if you have had the account for two years, in issue 34, you rate is just 3.91 per cent.
Check the best cash Isa rates in our savings tables
