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4 Jul 2020

News

Savers benefit from the liquidity crisis as fixed rates rise again

Andrew Hagger, Head of News and Press at Moneyfacts.co.uk, the money search engine comments on the recent increase in short-term savings rates.

It seems that some institutions had almost pre-empted the recommendations issued by the FSA yesterday and are already assessing their funding and liquidity positions. As a result they are already attempting to bring in more funds through deposits.

We have seen the most dramatic change happen in the shorter term fixed rate market, further adding to speculation that the institutions are hoping to build up their funds.

In the following list of the most recent changes in short-term fixed rate savings deals we can see some of the larger players in the mortgage market. Providers such as Standard Life Bank, who currently have 175 mortgage products on offer and Birmingham Midshires Solutions who offer 74 mortgage products stand out as having good reason to trying to attract savers.

As well as providing funds for the lenders this is also as excellent opportunity for savers to bag themselves an outstanding deal. But hurry, these kinds of deals don’t last.

Institution

Product Name

Term

New Rate
Gross at £1K

Old Rate
Gross at £1K

With effect from date

Birmingham
Midshires

Fixed Rate Bond

3 Month

6.80%

6.54%

5.12.07

Icesave

Fixed Rate Savings

6 Month

6.65%

N/A

5.12.07

National Counties BS

Savings Bond 20th Issue

6 Month

6.91%

N/A

10.12.07

Standard Life Bank

Fixed Rate Bond

26.6.08

6.80%

6.75%

26.11.07

            Source: Moneyfacts.co.uk - the money search engine          Rates correct as at 5.12.07.

Savings rates

About The Moneyfacts Group

Moneyfacts is recognised as the UK’s leading provider of independent personal finance information. For the last 20 years, Moneyfacts’ information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

 

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