Time running out to secure top 6% savings deals

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Savers have been urged to secure the top-paying accounts now, as banks start to pull deals from the market.

Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

27 Jul 2023

After more than a decade of paltry rates, savers can now earn more than 6%in annual interest on a number of fixed-term bonds. But experts have warned these top deals will soon disappear, as banks readjust their long-term interest rate expectations on the back of better-than-expected inflation data last week.

Some of the top accounts have already been withdrawn. First Save was offering 6.15% on an online two-year account, with a minimum deposit of £1,000 and a maximum of £2m, but applications for the account were closed this week.

Sarah Coles, of Hargreaves Lansdown, said the fall in rates had been “on the cards” since the inflation figures were announced.

Inflation fell to 8.7% to 7.9% in June, a larger drop than anticipated, prompting markets to downgrade their forecasts of future central interest rates.

Mrs Coles said: “Before this, overwhelming pessimism convinced the markets that inflation would be horribly sticky, and rates would