Confused about savings? This is the ideal time to take an interest
Confused about savings? This is the ideal time to take an interest
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While Rachel Reeves may be facing financial headaches, the turmoil is bringing serious good news for savers. The economic headwinds that have been buffeting the chancellor, Rachel Reeves, might be a headache for her, but they have brought positive news for some of those looking for a better deal on their savings.
![[Rupert Jones]](https://i.guim.co.uk/img/uploads/2022/08/30/Rupert_Jones.png?width=75&dpr=1&s=none&crop=none)
We have heard a lot recently about turmoil in the bond markets and higher UK government borrowing costs – but they are also pushing up the interest you can earn on some fixed-rate savings accounts. Meanwhile, strong competition between providers means you can currently get instant- and easy-access accounts that pay up to 5%.
With the 31 January self-assessment tax return deadline looming, lots of people are going through their paperwork and reviewing the state of their finances. So if your money is languishing in a savings account paying a rubbish return, now is the time to switch to a better-paying one.
These offer some of the highest rates. You typically have to tie up your money for between six months and five years, and they provide a clear, guaranteed return in these tricky times. However, some people do not have the luxury of being able to lock their cash away, while others would prefer to keep it easily accessible.
The good news is that the economic factors currently at play have pushed up the top rates on some these accounts, says Anna Bowes, a personal finance expert at the financial advisory firm The Private Office. “For the first time in 18 months, a five-year bond is paying more than the top one-year bond – great news for savers looking to lock in higher returns,” she adds.
