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| Sunshine for savers as interest rates show upwards movement | Sunshine for savers as interest rates show upwards movement |
| (5 months later) | |
| The first increase in savings rates in more than a year, plus the launch of two best-buy accounts, has raised hopes that months of rock-bottom returns could finally be drawing to a close. | The first increase in savings rates in more than a year, plus the launch of two best-buy accounts, has raised hopes that months of rock-bottom returns could finally be drawing to a close. |
| Interest rates on savings accounts have plummeted since the introduction of the Funding for Lending scheme in August 2012, which has enabled banks and building societies to tap into cheap money from the government, rather than seeking funds from retail investors. | Interest rates on savings accounts have plummeted since the introduction of the Funding for Lending scheme in August 2012, which has enabled banks and building societies to tap into cheap money from the government, rather than seeking funds from retail investors. |
| However, in a rare piece of good news for savers, Kent Reliance building society said it would increase the rates on its one- and two-year fixed savings deals from Thursday. It currently pays 1.8% on its one-year fix and 2% on its two-year fix, and these will increase to 2.05% and 2.35% respectively, enough to propel the accounts to the top of the best-buy tables. The minimum deposit for both accounts is £1,000. | However, in a rare piece of good news for savers, Kent Reliance building society said it would increase the rates on its one- and two-year fixed savings deals from Thursday. It currently pays 1.8% on its one-year fix and 2% on its two-year fix, and these will increase to 2.05% and 2.35% respectively, enough to propel the accounts to the top of the best-buy tables. The minimum deposit for both accounts is £1,000. |
| Halifax, one of the largest players in the savings industry, has also lifted rates on its Fixed Saver and Fixed Online Saver accounts by 0.45 percentage points. It is now paying 2.1% over two years, 2.25% over three years, 2.3% for four years and 2.35% for five years. While these are far from the best rates on the market, the move from such a big player offers hope that other institutions may make similar announcements. | Halifax, one of the largest players in the savings industry, has also lifted rates on its Fixed Saver and Fixed Online Saver accounts by 0.45 percentage points. It is now paying 2.1% over two years, 2.25% over three years, 2.3% for four years and 2.35% for five years. While these are far from the best rates on the market, the move from such a big player offers hope that other institutions may make similar announcements. |
| Andrew Hagger, personal finance specialist at MoneyComms, said this marks the first uptick in rates since March 2012. | Andrew Hagger, personal finance specialist at MoneyComms, said this marks the first uptick in rates since March 2012. |
| "Fixed-rates have been in steady decline since then, when you could get 3.65% on a one-year bond, for example. | "Fixed-rates have been in steady decline since then, when you could get 3.65% on a one-year bond, for example. |
| "It may be too early to say whether this is a trend and other providers will follow, but it will be interesting as there has been little interest in best-buy tables since Funding for Lending came in." | "It may be too early to say whether this is a trend and other providers will follow, but it will be interesting as there has been little interest in best-buy tables since Funding for Lending came in." |
| John Eastgate of Kent Reliance said the accounts were available "on a strictly limited edition basis", so savers needed to be quick with their applications. | John Eastgate of Kent Reliance said the accounts were available "on a strictly limited edition basis", so savers needed to be quick with their applications. |