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Some savings providers launch best-buy accounts and withdraw them within hours of launching as rates continue to rise.
As a result, savers may only have a short time to trade or risk missing out on the best accounts.
Savings rates have risen rapidly in recent months, with new accounts often at the top of our independent best-buy tables.
But many challengers and building societies have small funding targets, meaning bills can be drawn quickly — especially given the current increased demand from low-interest savers.
Crushed Plans: While rates are rising rapidly, the best buys aren’t always immediately outmatched.
As soon as enough money is in, the providers withdraw the deal.
For example, Close Brothers last week launched a market-leading one-year fix that paid 4.25 percent and a two-year fixed cash tip Isa that paid 4.15 percent.
Both deals launched at 9:45 a.m. Wednesday. However, they were pulled at 4:38 PM.
>> Sign up for our savings alert service to stay informed about the best rates.
Over the past week, we’ve seen a number of similar examples. Yesterday, Charter Savings Bank withdrew its market-leading one-year fixed rate by 4.31 percent, just four days after launch.
On Friday, Melton Building Society withdrew its 14-month fixed-income deal of 4.2 percent. It was only available for a week.
Similarly, Secure Trust Bank launched a one-year 4.2 percent fix at 9:45 a.m. Tuesday, before closing the deal at 1 p.m. the following day.
Last month, Castle Trust Bank, Newcastle Building Society and BLME all launched notable market-leading fixed-rate deals, only to have the products withdrawn within days – some in less than 24 hours.
This is Money called Newcastle the launch of a market-leading one-year deal, but the deal was withdrawn a few hours later.
A spokesperson for the health insurance company said at the time: “The one-year fixed-income bond was very popular and filled up very quickly, so it was withdrawn over lunch.”
As interest rates rise, savers may feel they have nothing to lose by waiting in the belief that if a best buy is withdrawn, something even better will soon take its place.
While it’s true that prices are rising quickly, the best bargains aren’t always outperformed.
early last week, Hargreaves Lansdown’s savings platform* offered a six-month flat fee and paid 3.35 percent.
It has since been withdrawn and there are currently no six-month deals available on the platform and no six-month deals that come close to beating the deal that was withdrawn.
Zenith Bank’s six-month deal pays 3 percent* via the platform, Raisin UK, is the next best price available right now.
Those who sign up for Raisin for the first time using the link above and deposit £10,000 into the account will also receive a £30 welcome bonus.
This means that on a £10,000 deposit, someone can essentially earn an effective return of £180, rather than £150 after six months.
Anna Bowes, co-founder of Savings Champion, said: “Some of the best savings rates have more than doubled since early December last year, just before the base rate started to rise – and are now paying more than they have for over a decade.
So, with some of the best rates withdrawing within hours, if you see a rate you like, it may be wise to go ahead and open it.
‘All the while waiting for a better interest rate, you’re missing out on higher interest rates.’
What are the best rates today?
While many of the major banks still pay pitiful returns to savers, the best savings rates for easily accessible savings have risen to as much as 2.5 percent, with more than 13,300 raises on variable accounts in the past nine months alone.
There are currently 10 providers who pay 2 percent or more. The best creature Al Rayan Bank’s 2.35 percent deal and The Yorkshire Building Society’s 2.5 percent deal – albeit the latter only on balances up to £5,000.
Following the withdrawal of Charter Savings Bank today, Vanquis sofa is the current market-leading one-year fixed-income deal that pays 4.25 percent.
For the time being, Charter Savings Bank leads the way on the two-year front with a 4.62 percent deal.
Nationwide also offers the best solution for three years Pay 4.75%.
For savers who want to protect the interest they earn from the tax authorities, an Isa cash product may be best.
The best easily accessible Isa cash deal currently offered by Coventry Building Society’s 2.25 percent deal – although it limits savers to just six free withdrawals per year.
In terms of fixed rate Isa deals, Shawbrook Bank and Gatehouse Bank currently both offer one-year deals that pay 3.7 percent.
Gatehouse Bank is also home to the industry-leading two-year deal, which pays 4 percent.
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