The best rates won’t wait! Some top savings deals now disappear in as little as five days
- Some providers only offer deals online, so that they can pull them quickly
- Banks and building increasingly tweak their rates to move up the best buy tables
- These tables are designed to help savers find the top deals
- Providers know that their position in the tables is crucial for bringing in money
Banks and building societies tweak their rates by as little as 0.01 percentage points to move up the best buy tables
Savers need to be on their toes to grab the best rates, as some now disappear in as little as five days.
Some providers only offer deals online, so that they can pull them quickly to stem the tide of new money coming in from rate-starved savers.
Banks and building societies increasingly tweak their rates by as little as 0.01 percentage points to move up the best buy tables.
These tables are designed to help savers find the top deals among more than 1,800 accounts from hundreds of providers.
Savings providers know that their position in the tables is crucial for bringing in the money they need. If they move into one of the top three places, it can quickly bring in tens of millions of pounds.
It can mean they need to be able to remove the account from sale swiftly, so as not to overshoot their target — or they will have money sitting around that they cannot lend out, earning them nothing.
They then replace the account with a less attractive deal to keep their name in the public eye without money pouring in.
The upshot is that savers need to move fast to secure the rates before they vanish.
James Blower, founder of The Savings Guru, which advises small banks on how to raise money from savers, says: ‘It is easier for new banks to pull in what they want in one slug, rather than raise it over a longer time.
‘A tiny move in rate can push them from tenth position in the best buy tables to the top. Once there, money pours in, so they have to close the account.’
Some change their rate by such a tiny amount that it is worth just £1 extra interest a year on each £10,000.
This can be because many providers decide their rates weeks before their account is launched. So, by the time it hits the market, they find themselves lower down the best buy tables than expected and need to edge up further to pull in the money they need.
Earlier this month, for example, OakNorth Bank launched a one-year fixed-rate cash Isa at 1.74 per cent.
Just one day later, it raised the rate by a tiny 0.01 percentage point to 1.75 per cent, putting it in the top spot, slightly ahead of its nearest contender at 1.74 per cent.
Five days later, the rate fell to 1.68 per cent for new applicants, to stem the flow of money.
Paragon Bank’s Limited Edition easy- access rate also quickly disappeared. Savers had just 19 days to sign up to the latest version, on sale earlier this month, paying a comparatively high 1.45 per cent.
Building societies are behaving similarly with their online accounts. The Websaver Double Access account at 1.5 per cent from West Bromwich, the seventh-largest building society, lasted just four weeks.
Leeds BS, the fifth-largest, currently offers its Limited Issue Online Access Isa at 1.38 per cent.
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