Do your homework if you want to grab rising savings rates

theguardian.com:

Amid the cost of living crisis, savers have been among the only ones who have got anything positive out of it, as rates teeter at around their highest levels in more than a decade.

Consumers can get close to 5% for those willing to put their money away for up to two years – but even easy-access accounts are many times better than they were in 2021.

“We’ve seen rates raised to the highest levels that I have seen in 11 years. It really is an extraordinary time,” says Anna Bowes, co-founder of website Savings Champion.

So, as inflation continues to bite, how can consumers make the most of their money?

In order to counter rising inflation – which stayed in double figures in March as food and drink prices spiralled – the Bank of England has repeatedly increased the base rate. It is expected that there will be one more interest rate rise, to 4.5%, next month.

As a result, many banks – but not all – have been raising their savings rates. And those that have not are coming under increasing pressure to do so. Figures from financial data provider Moneyfacts show a drastic difference in rates over the last two years.

In April 2021, the best deal on an easy-access account – from Virgin Money – gave customers just 0.5%. Last week, one of the highest rates on offer was 3.6% from Yorkshire building society.

Two years ago, the best rate from a notice account was a paltry 0.65% from Moneycorp Bank. Now, the highest-paying provider is Oxbury Bank, at 4.05%, provided you accept the 180-day notice period.

Fixed-rate bond returns have also gone up. At this time in 2021, one-year bonds offered up to 0.62% (from Atom Bank), but savers can now get 4.6% from Investec Bank.

For two-year bonds, the best rate on offer has gone from 0.8% from BLME to 4.7%