Past six months ‘worst first half-year for savers in over a decade’

The past six months have been the worst first half of the year for savers in more than a decade, according to a financial information website.

Between January and June, savings accounts have endured the most severe falls of any first half since 2009, Moneyfacts.co.uk found.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “The falls are the largest we have seen since 2009, after the financial crash.

“This demonstrates how much the market has been impacted by the coronavirus pandemic and (Bank of England) base rate cuts, and it will leave savers feeling frustrated and disappointed.”

Moneyfacts found, for example, that the average rate offered on an easy access savings account fell by 0.29 percentage points between January and June – from 0.59% to 0.30%.

Ms Springall continued: “It is imperative that savers act quickly to acquire the top rates on the market, regardless of which type of savings account they choose, as there seems no end to the downward trend.

“Due to the uncertainties that the coronavirus pandemic has instilled, it is more important than ever before for consumers to build up an emergency fund that they can dip in to should they run into any financial difficulties in the months to come.”

Ms Springall said that while some savings accounts pay as little as 0.01%, there are better rates available.

She highlighted a deal at 1.15% from NS&I, and ICICI Bank UK’s 45-day notice account paying 1.24%.

Al Rayan Bank offers savers 1.00% on an Isa, which is 0.63 percentage points higher than the current average easy access Isa rate, Ms Springall said.