It’s now been more than a year since the Bank of England Base Rate was slashed to a record low of 0.1 percent, in response to the coronavirus pandemic. Despite some speculation about negative interest rates in the UK, it’s been maintained at this level ever since.
“Sign up to savings rate alerts and be sure to keep on top of any emails from your existing provider,” Ms Springall suggested.
“Savings providers can change variable rates at any point, so consumers need to keep tabs on changes and move their money if they find they are on a poor rate.”
Failing to keep on top of the different offers could mean bad news for savers usually, but even more so during a time when interest rates are low, she pointed out.
Ms Springall said: “Apathy is a terrible state for savers to fall into in a low interest rate environment but it’s really important consumers compare rates regularly, especially if their cash is with a big high street bank.
“As an example Virgin Money pays 0.50 percent right now on its M Plus Saver, but HSBC pay just 0.01 percent on its Flexible Saver.”
Another option which the finance expert highlighted was to take a look at alternatives to the “traditional” savings options.
“One way to earn more interest away from a traditional savings account is to open a high interest current account,” she said.
“Virgin Money currently pay 2.00 percent gross/2.02 percent AER on its M Plus Account up to balances of £1,000 – savers must open a Virgin Money Instant Savings Account at the same time as the current account to be eligible.”
Setting up a specific regular savings account which pays top interest rates is another option.
“Choosing a regular savings account is a great way for consumers to put away a regular amount of cash towards any goals as they encourage the savings habit,” Ms Springall said.
So, what are some of the best options out there?
“At the moment NatWest offer a Digital Regular Saver to new and existing current account customers that pays 3.04 percent AER variable on balances up to £1,000,” the Moneyfacts finance expert said.
“Yorkshire Building Society has a loyalty regular saver for its existing customers paying 3.50 percent AER variable, a fantastic rate for its members who have been with the mutual since January 2020.”
For those who aren’t eligible though, there are alternatives to look into.
“Savers who are not with either provider could instead find West Bromwich Building Society offering a two percent AER fixed branch saver and a deal from Coventry Building Society paying 1.05 percent AER variable which is available to online, in branch, by post or over the phone.”
All of the aforementioned options were correct at the time of writing. Eligibility rules may apply.