Top savings rates are falling, but signing up to a platform could boost your interest

The products featured in this article are independently selected by This is Money journalists. If you open an account using links marked with an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

Interest rates on the best fixed savings deals have fallen again in recent weeks, after reaching highs not seen in more than a decade.

At the beginning of this month, the best price for one year was up 4.65 percent. Now the best deal pays only 4.36 percent.

The best two-year, three-year and five-year reforms rose to 5 percent or higher. Now the best two-year repair pays 4.81 percent, the best three-year repair pays 4.85 percent, and the best five-year repair pays 4.9 percent.

Now or never? Fixed-rate savings seems to have reached the end of its upward trajectory — at least for now

Experts urge savers who might have been sitting on the fence in expecting savings rates to rise even further to snap up the best bargains while they can.

Rachel Springol, financial expert at Moneyfacts, said: “Savers will find that providers have revised cash rates which have been table-topping in recent weeks, with notable attention being paid to fixed-rate bonds.

“Since the last inflation announcement, some of the higher fixed rate bonds have seen reductions but further adjustments are possible in the future.”

Springall added: “Savers may need to act quickly if they want to take advantage of the current rates on offer.

Those savers who are willing to lock their money away for a year will find that the top rate is much higher than last year’s bargain high, at 1.35 percent.

“Noticeable improvements have been made to long-term fixed bonds since last year.”

– Find the best fixed-price savings deals on our standalone Best Buy tables

How to use the savings platform and get a cash reward

One way for savers to find the best fixed-rate deals is by using savings platforms.

These platforms allow savers to register and manage accounts with different banks in one place. This means that they can switch money between providers and get the best rates with less admin.

Going online: Although savings platforms don't have every account on the market, they tend to offer some of the best deals

Going online: Although savings platforms don’t have every account on the market, they tend to offer some of the best deals

Platforms like Hargreaves Lansdown and Raisin UK are home to some of these higher rates nowadays. Both are free to use, and both are currently offering cash bonuses for joining.

Savers who sign up for Hargreaves Lansdown, Active Savings* platform for the first time can earn up to £100 cash bonus. However, they will need to be quick when the offer expires at the end of the month.

The amount savers will get cashback will depend on how much they put in. For example, those who place £10,000 will insure £20, while those who place £80,000 will insure £100.

Hargreaves Lansdown is offering tiered cashback for new joiners until the end of this month

Hargreaves Lansdown is offering tiered cashback for new joiners until the end of this month

The best two-year repair on the Hargreaves platform pays 4.75 per cent, and the best five-year deal pays 4.9 per cent* – in line with the best deals in the broader market.

However, by factoring in the cash reward along with the interest they earn, savers will effectively get a better deal.

For example, £10,000 in the best two-year fixed-rate deal would be boosted by 2.75 per cent to 2.85 per cent with a bonus of £20 added.

Raisin UK, another free savings platform, is currently offering a £30 welcome bonus to This is Money readers who open a new Raisin account via this link* or any link from our website.

It offers savers the chance to increase their savings by £30 when they open a market account with a minimum of £10,000.

Best one-year repair pays 4.36 percent*, best two-year repair pays 4.75*, best three-year repair pays 4.85 percent* and best five-year offers pay 4.9 percent* – all in line with the best prices you can get in the broader market .

Anyone who saves £10,000 on Raisin’s Best One Year Deal could effectively be guaranteed an interest rate of 4.66 per cent, once the £30 bonus is included.

Do I have to register on a savings platform?

Cash held in savings platforms currently accounts for less than 1 per cent of all savings in the UK, according to savings website, The Savings Guru.

However, savings platforms arguably simplify the process for savers by helping them keep track of their accounts more easily and move money around faster.

They may not always offer the best rates in the market, but they do allow customers to manage multiple accounts in one place.

This means that with a single online account, savers can open multiple savings accounts with many different banks when they require without filling in and managing the usual form.

For those with large amounts of savings, another major advantage of using a savings platform is that they are able to deploy the FSCS protection that is granted to each individual banking license.

The Financial Services Compensation Scheme (FSCS) is the UK’s Deposit Security Scheme, which offers protection of up to £85,000 for an individual or £170,000 in the case of joint accounts, with each eligible bank or building society taking part.

By allowing savers access to more than one provider, savings platforms enable them to spread FSCS protection across their multiple holdings, without having to apply for individual accounts with each bank.

For example, if they saved with six different banks that were all covered by the FSCS, they would be protected with up to £85,000 in each account – despite any extra money they might hold with the bank separately outside of the platform.

Nowadays there are only a few savings platforms.

Raisin’s and Hargreaves’ competitors include Lansdown Flagstone, AJ Bell’s Cash Savings Hub, and Aviva Save.

Some of the links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to influence our editorial independence.

Previous post
Google’s Accidentally Refunding Some Customers for Stadia Pro
Next post
Woman flew 3,000 miles to meet online boyfriend before being murdered for her organs