Top Rates Are Disappearing At A Great Pace And The Trend Is To Continue.
Ford Money, Kent Reliance, Charter and Sainsbury’s have removed their top accounts and have replaced them with inferior accounts.
- The launch of Marcus from Goldman Sachs in last September has made accounts costlier.
- As a result, the maximum deposit amount of Goldman Sachs has also lowered from £250,000 to £100,000.
Easy-access accounts are just like savings accounts but it gives more benefits to the customer. An investor can withdraw and deposit money whenever they want and the rate of interest is also higher as compared to many current accounts.
The flexibility is much more than a normal savings account. Easy-access accounts are much more convenient as withdrawal of money and making monthly payments is much easier in easy access accounts.
Nowadays, great deals are disappearing very quickly, that means the deals that provide a higher rate of interest on easy access accounts are disappearing at a very high pace. One must always keep looking for the high rate of interests and grab the best deal before it is gone.
Market experts are predicting that the trend is going to continue and the top rates will keep on disappearing. So, one should not wait and choose the deal immediately without making any delay.
Top accounts from Ford money, Kent Reliance, Charter Savings Bank, Sainsbury’s Bank, etc. are already gone.
Goldman Sachs launched the Marcus account last September, because of which raising the money through easy-access accounts has become very expensive.
The 1.5 percent rate compelled the small banks and building societies to increase their rate of interest as well, thus increasing the easy-access account’s rate to the highest level for 2 years.
Investors or savers are unable to understand and predict the economic uncertainty and because of which more cash flow is coming in easy-access accounts.
In the past 1 year, around £30 billion has been deposited in the easy-access accounts whereas people have disinvested around £53 billion from fixed-rate bonds.
Investment experts have also noticed a trend that a lot of people have invested the money in ISAs at the end of the financial year.
Kevin Mountford, who is the CEO at savings marketplace Raisin UK has also commented on the situation saying that the bank needs to act in a smarter way when the easy-access money gets costlier so that they don’t raise money more than their need.
He also said that more deals are going to disappear and hence further rate cuts can also be predicted.
Ford Money always offers easy-money account but it is the first time since the past 2 years that it has not offered an easy-access account. They even closed their accounts earlier this month.
They still pay 1.42 percent on their Flexible Saver but only to those who already have an account. Charter Savings Banks provides 0.75 percent to the new savers whereas old savers were provided 1.35 percent.
Coventry BS has revised their rate of interest and is now offering 1.05 percent whereas earlier they were offering 1.15 percent.