Rates are changing so fast, offline savers can’t keep up

OLDER savers are missing out on hundreds of pounds in interest because they are not going online.

Savings account fire sales are fast becoming the norm, with one top rate available for just 24 hours before it was slashed.

It means customers who do not use the internet — often because of fears of fraud — don’t hear about the deals in time.

The big banks pay just 0.01 pc on easyaccess accounts while the top one-year fixed-rate bond is just 0.3 pc on offer from HSBC and Barclays. Online savers can pick up as much as 0.8 pc on easy-access money with Principality BS Web Save 3, or 1.15 pc fixed for one year with Family BS — but you need to act fast to get the best deals.

Online banks and building societies can quickly alter rates if money is coming in faster than they can lend it.

OakNorth Bank has changed its rates four times in little over a week.

Nick Lee, its head of regulatory affairs, says: ‘The savings market is in a state of flux following the cut in the rates paid by National Savings & Investments. Banks are adjusting their rates on the back of this.’ The bank’s very top rate of 1.31 pc on sale last month lasted for just 24 hours before falling to 1.26 pc. It now stands at 1.06 pc following a further cut for new savers. Paragon Bank’s 1.3 pc and Aldermore Bank at 1.26 pc were on sale for only a few days.

Top easy-access accounts are also shortlived. Skipton BS Online Bonus Saver sold out in three days after interest- starved savers piled into the account paying 1.2 pc.

The society’s E-Isa Saver at a top 1 pc was also withdrawn from sale after just four days. It has now halved the rate for savers opening an account to 0.5 pc.

Coventry BS Double Access Saver (Online) launched at a rate of 1.2 pc but after four days was replaced by a new issue at a lower 1.1 pc. That quickly sold out too, and the rate fell to 1.05 pc for new savers. Yesterday it went down again to 0.96 pc.

The account suits those happy to limit their withdrawals to just two a year rather than have access to their money at any time.