 |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
Media centre /
Press releaseSAVINGS RATES STABLE ACROSS THE MARKET BUT VARY BY UP TO 6.9%26 January 2005NS&I SAVINGS RATE COMPARATOR: NOVEMBER 2004 – JANUARY 2005 Savings rates across the 11 main savings product types remained broadly stable in the three month period from November 2004 to January 2005, but there also remains a vast difference between the lowest and highest rates available, according to analysis by National Savings and Investments (NS&I). The analysis forms part of NS&I’s ongoing reports on trends in the savings marketplace, which also included the launch of the NS&I Quarterly Savings Survey in December 2004. Main findings
With the Bank of England base rate unchanged at 4.75% since August 2004 there is little evidence of unilateral rate reductions among savings providers. This stability means savers can take some comfort in the knowledge that they have not had to continually check that their returns have changed. The NS&I Savings Product Comparator analysed the highest, lowest and mean rates in each of the 11 major savings product categories in each month (see editor’s notes for full details) and showed that average rates have remained stable. However, the variation in rates remains consistently between a low of 0.10% and a high of 7.00% across the market. There were only small changes in top, mean or bottom rates in seven categories. Significant changes within product types Fixed rate bonds Only fixed rate bonds experienced a decline in mean (average) savings rates (from 5.00% to 4.75%) over the three month period, although the highest rate available (5.55%) was unchanged. The fall in fixed rate bond rates reflects a fall of up to 0.26% in the return on gilts – or government bonds – in this period, to which they are linked. Monthly interest accounts Monthly Interest accounts saw the greatest fall in the highest rate available (5.38% to 5.25%) but the mean rate for this sector was unchanged. Cash mini ISAs Cash mini ISAs and notice accounts saw the greatest rise in the highest rate available (cash mini ISAs from 5.40% to 5.70%, notice accounts from 5.35% to 5.45%). There has been some recovery in the volume and value of new business for ISA providers in the past 12 months, according to data from CACI, a leading provider of financial information. The popularity of ISAs is reinforced by CACI’s figures which show continual growth in the number of ISA accounts and the total amount invested since the tax-free accounts were launched in 1999. Variation in range of rates within product types Despite rates remaining stable there is an enormous variation in rates, both overall and within product sectors:
Product types with highest/lowest average rates Based upon analysis of maintaining the highest average rates, the best savings products are cash mini ISAs, no notice bonus accounts and fixed rate bonds. In addition, these are the only three product types where the average rate also matched or exceeded the Bank of England base rate (4.75%) in the period under review. However, only cash mini ISAs also have the benefit of both tax free status and no requirement for money to be locked away for long periods to earn the interest rates. The least attractive product in the market is, unsurprisingly given the high volume of transactions, the current account, having the poorest top and mean rate (4.50% and 1.57%). Instant access accounts had the second lowest top and mean rate: 5.20% and 2.70% across the quarter. Rate stability good for savers Dax Harkins, senior savings strategist at NS&I, said: “The general stability in rates is great news for savers at the moment because it means that they have not had to worry about having to keep an eye on their returns to check they have not suddenly dropped. This is exactly what you would hope to see if there had been no base rate change as is the case now. But there is still considerable variation across the products, which means savers can take advantage of the variety of different offers available. This is a sign that there is healthy competition in the marketplace. NS&I will continue to monitor this in its next Quarterly Savings Survey, due out in March.” ENDS Notes to Editors
Source data: Moneyfacts Definitions Instant access: Accounts where you can withdraw cash instantly, i.e. at a Branch or ATM Internet only: Only Internet Access No notice bonus: No notice accounts paying an introductory bonus for a set period of time No notice without bonus: Accounts operated by post, phone or internet with no notice required to withdraw funds Notice: Must give notice of intention to withdraw funds Children’s: Available to children only Mini cash ISA: Tax free Current account: No notice accounts with overdraft facilities Monthly interest: Interest paid monthly Regular: Regular deposits to be made Fixed rate bond: Product with rates fixed for a set ter The first NS&I Product Comparator was launched in the first NS&I Quarterly Savings Survey (8 December 2004), covering the three months September, October, November 2004. Dax Harkins is available for interview and high resolution photographs can be supplied. Contact the media team to arrange an interview or request photographs by e-mail. Enquiries: NS&I Media Team
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
|
|
Search |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
 |
|
|
||||||||||||||||||||||||||||||
