Savers must sprint to get the best deals

sprintersIf you're looking for a good rate on your savings you'll need to act quick as the best deals are vanishing from the market at the fastest rate since 2008.

Figures from Moneyfacts.co.uk show that the average length of time a fixed rate savings account stays on the market has fallen to just 37 days – the lowest level since December 2008. Only last week a market-leading deal was launched and withdrawn by Yorkshire Building Society in just three days.

Since base rate has been at its all time low of 0.5%, the average length of time bonds have hung around for has typically been over 100 days, peaking at 133 days in October 2009.

In recent months average fixed bond rates have also started to fall, particularly on longer term bonds with the average five year bond falling from 4.34% at the start of May to 4.03% today.

Michelle Slade, spokesperson for Moneyfacts.co.uk, said: "In recent months there has been a downward trend for bond rates, resulting in savers rushing to secure the best deals. Once a few providers start to cut rates, others will follow suit as no provider wants to pay more than they need to, to attract savers' money.

"Money market rates are now notably lower than they were a few months ago and it is likely that providers are using this to raise money for their lending rather than through their savings book. Savers are still actively trying to find the best deal, so when market leading deals are launched they are oversubscribed extremely quickly. If savers want to secure top rates they need to act fast because if they wait too long it's likely the deal will be gone."
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