SmartSave Bank launches yet another best buy one-year fixed-rate savings deal
SmartSave Bank launches best buy one-year fixed savings deal – the FOURTEENTH time it has raised interest rates in just 27 days…
- SmartSave has changed the rate of its annual fix 14 times since June 1
- Other banks have also been busy repricing – OakNorth Bank made 7 increases in June
- One expert says this fiddling with interest rates is a sign that some banks are struggling to attract depositors
The savings war has intensified so much that some challenger banks are now tinkering with the best buy rates on an almost daily basis, according to analysis for This is Money.
Since June 1, SmartSave has changed the rate on its one-year fix 14 times to stay ahead of the competition.
By increasing the rate every other day on average, it offered 5.16 pc. at the beginning of the month to 5.86 pc. today – an increase of 0.7 percentage points.
Prolific: Since June 1, SmartSave Bank has changed the rate on its one-year fix 14 times to stay ahead of the competition (pictured Thierry Henry in his iconic 14 Arsenal shirt)
In an extraordinary 30-hour period on June 13 and 14, SmartSave adjusted its rate four times to remain competitive.
Other banks are also working on repricing. OakNorth Bank made seven rate hikes in June, Close Brothers six and Oxbury Bank raised four times.
Savings Guru’s James Blower says constant interest rate changes are a sign that some banks are struggling to attract depositors.
“It’s a fast-moving market and SmartSave has made most of the changes, suggesting it won’t be able to attract savers unless they offer a best buy.
“Savers don’t like the fact that they can’t reach SmartSave by phone and will hesitate unless they offer the highest rate.”
At the beginning of the month, the overall best one-year fix paid 5.25 percent. Today, the best deal pays 5.86 percent.
Over a 12-month period, this means a saver would have missed out on £61 in annual interest on a £10,000 pot if they opened a best buy short term solution in early June instead of today.
| Date | Rate increased to |
|---|---|
| 01/06/2023 | 5.16% |
| 05/06/2023 | 5.26% |
| 09/06/2023 | 5.31% |
| 13/06/2023 (10:30 am) | 5.36% |
| 13/06/2023 (3:40 PM) | 5.38% |
| 14/06/2023 (10:30 am) | 5.41% |
| 14/06/2023 (5 pm) | 5.43% |
| 16/06/2023 | 5.52% |
| 20/06/2023 | 5.56% |
| 21/06/2023 | 5.57% |
| 22/06/2023 | 5.71% |
| 23/06/2023 | 5.76% |
| 26/06/2023 (10.45am) | 5.77% |
| 26/06/2023 (5 pm) | 5.79% |
| 27/06/2023 | 5.86% |
| Credit: Savings Champion |
Anna Bowes, co-founder of Savings Champion, says: ‘It’s good news that there are several providers competing for the best buying tables.
“It helps push rates to extraordinary levels, especially in the shorter term.”
SmartSave is a trading name of Chetwood Financial Limited, a UK based bank based in Wrexham.
It lends its money to customers through what it calls “dynamic loans,” which adjust the rate as their credit scores improve.
According to The Savings Guru, as of March 2021 it had £160m in deposits with a loan portfolio of £182m.
Savers wishing to open an account with SmartSave must do so online, as SmartSave has no branches.
Andy Mielczarek, founder and CEO of SmartSave, said, “We are constantly assessing changes in the market.
“In an economy where interest rates are rising and inflation is running high, it is important for us to be able to react quickly to ensure that we offer our customers the most competitive savings rates.
“Fortunately, our technology allows us to do this quickly.”
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