NatWest has today launched a new savings competition to encourage first-time savers to build up their pots. The £1,000 competition begins today, March 1, and 10 customers will each be awarded £1,000 for opening an account with the firm and saving into it regularly.
Savers will likely want to jump on these kinds of offers as recent analysis from moneyfacts.co.uk revealed rates across the board have plummeted.
Moneyfacts.co.uk examined how the savings market is coping a year on from the initial “financial shock” of the pandemic.
According to their analysis, savings rates have plummeted to record lows as providers cut and pulled their offers over the last 12 months or so.
On top of this, moneyfacts.co.uk warned that a large inflow of savers’ cash could push providers to review thier interest rates as deals may become oversubscribed.
“Consumers may well have put away more cash during lockdown, but before then the impact of the Coronavirus had initiated two base rate cuts in March 2020, which combined with a subsequent drop in competition, decimated the savings landscape.
“One of the most popular savings vehicles are easy access accounts and it would not be surprising to see savers continue to favour deals where they can get instant access to their cash.
“However, as the average rate on easy access accounts has dropped to 0.17 percent, some savers looking for a better return may need to review their options, such as with a fixed bond, but keep in mind that these vehicles have also seen large rate cuts.
“It is hoped that competition will return to the saving market, but it will no doubt be a steady process and not an overnight sensation. Savers would be wise to take advantage of any tax-free savings vehicles or Government initiatives such as the Help to Save scheme in the meantime and of course any plans for a new Government-backed NS&I savings deal to help combat the deficit.”
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