Average Easy Access Rates up 0.34 Per Cent Compared to 2010

CHESTER, England, October 18, 2011 -

• Average bonus rates on easy access drop 0.26 per cent compared to last year
• Savers with bonus offers expiring should look to switch to maximise returns

Increased competition within the easy access savings market, particularly with smaller players competing for funds, has seen the average rate on the top 10 easy access account increase by 0.34 per cent compared to this time last year, despite no movement in Bank of England Base Rate, according to analysis from MoneySupermarket.

Britain’s number one comparison site looked at the top ten easy access rates currently on offer compared to the same period in 2010, and found that the average AER has seen an 11 per cent increase, with the current average at 3.05 per cent. However, the average bonus rate had decreased from 1.76 per cent to 1.50 per cent; meaning the average bonus rates now account for 49 per cent of the total AER, compared to 65 per cent last year.

The majority of top ten easy access savings accounts include a bonus, typically for 12 months, allowing savers to take advantage of headline grabbing rates. Nationwide building society, for example is currently offering 3.12 per cent - 1.58 per cent of which is made up of a bonus. Once the bonus rate expires, rates drop significantly. For example, a saver that took out the leading NatWest e-Savings account in October 2010 would find their 2.89 per cent AER drop to 1.04 per cent 12 months later, resulting in the loss of £92.50 in interest in a year.*

Kevin Mountford, head of banking at MoneySupermarketcommented: “A 0.34 per cent increase in average easy access saving rates is great news for savers, particularly against a backdrop of a static base rate. Many of the top paying accounts are paying interest of at least six times that of the base rate, unheard of before the recession.

“Providers use attractive headline bonus rates to lure in customers, and in some cases, the bonus can mean double the amount of interest gained for a year - which for those wanting more from their money seems like a no brainer. However, the benefits can soon be wiped out if customers forget to switch once the promotional period has expired. Bonuses are good news for consumers but once they expire it is time to switch, in order to make sure their savings are working as hard as possible for them.

“It is also imperative that those with an easy access savings account check their small print for any restricted access that may apply, as some providers may allow as little as one penalty-free withdrawal during the term.”

*Based on savings amount of £5,000

moneysupermarket.com’s customer commitment

• No other site compares more prices or products
• We are independent so only find the best deals for you   
• The price you see is the price you pay - you don’t need to go direct and you won’t get a better deal doing so   
• Your details are safe with us and we won’t sell them to anybody

moneysupermarket.com compares (at 22^nd September 2011)

• 101 car insurance providers and 78 home insurance providers
• 13 broadband providers and 18 energy providers   
• 29 unsecured loan and 5 secured loan providers
• 62 mortgage lenders and 29 credit card providers
• 70 savings providers and 35 current account providers.
• Over 810,000 mobile phone deals

We promise to be clear and impartial

• All the products in our full search results tables are displayed in a completely unbiased manner.
• We don’t add fees or commissions on to the prices we compare.
• There may be times when another site compares more companies than us on a particular product, perhaps because of market changes or technical issues. You’ll be able to see this and know we are working hard to fix it.

We promise to be trustworthy

• We never use your data to make unwanted sales calls or send you spam.
• We never pass your personal information to third parties unless you give us permission to do so.
• Even if you choose to receive additional information from us, you can opt out at any time. 
• We promise to be supportive.
• You can use our community forum to get information and help from other customers.

If you need further help or support, you can contact our sales advisors, customer services agents.

For further information, please contact:
Kevin Mountford
Head of banking
+44(0)787-237-8537
kevin.mountford@moneysupermarket.com 

Paul Lawler
PR Manager (Financial Services)
+44(0)1244-370317
paul.lawler@moneysupermarket.com 

.