Savers need to act quickly to secure best buy rates as the most competitive deals are being withdrawn after just days on the market.
Savers are not only suffering from poor rates but now face a race against time to secure the best deal as some best buys are available for just 48 hours before being taken off the market.
Several banks and building societies have launched marketing-leading rates in recent weeks, only for them to be pulled a matter of days later due to demand.
We’ve taken a look at the disappearing best buys – and what savers should do to get the best rates.
Compare the latest savings, ISA and peer-to-peer rates
Which accounts have disappeared in days?
National Countries Building Society launched a new issue of its Savings Bond on 20th October, paying a competitive 1.90% gross/AER fixed for eight months.
The account was pulled just three days later due to popular demand.
However, that was one day longer than the first version of the same account. The Savings Bond was first available for just two days in September, launching on the 10th and being withdrawn on the 12th.
Similarly, Chorley Building Society launched a very competitive two-year fixed rate bond last month paying 2.75%, some 0.45% above the nearest competition at 2.30%.
The bond was withdrawn after just two days due to what the building society described as its “overwhelming success”.
Accounts which lasted a week
Several other banks and building societies have left best buys up for grabs for about a week before pulling them.
[SPOTLIGHT]For example, Yorkshire Building Society launched a one-year fixed rate bond and fixed rate ISA both at 2% on 21st August. The deals were best buys at the time but withdrawn just a week later on 28th August.
Shawbrook Bank launched a best buy 120-day notice account at 1.75% on 3rd October then withdrew it just six days later on 9th October before relaunching it with a rate of 1.65%.
Secure Trust Bank launched a two-year fixed rate bond at 2.36% on 29th September. The account was withdrawn eight days later on 7th October after briefly topping the best buy tables.
Other banks to quickly pull best buys include United Trust Bank and Aldermore Bank.
Why are rates withdrawn so quickly?
When banks and building societies launch a savings account they set a target amount of money they want to attract to the account. When this amount is reached, they close the account to new customers.
With savings accounts offering such paltry rates at the moment it means that as soon as a decent rate comes on the market it’s swamped with demand. Which is why best buy rates can be available for as little as 48 hours.
What should savers do?
The message for savers is clear: keep an eye on the savings best buy tables and if you see a decent rate, grab it. If you snooze, you lose.
If you’re in the market for a new home for your savings and spot an attractive rate, get your application in straight away.
Some lenders who deal with applications via post will honour application forms sent out for a few extra days after the closing date – this will give some savers some extra breathing space.
If you opt for a fixed rate bond, or an account with a bonus for a certain period of time, make a note of when the rate falls and be ready to shop around and move your money.
Pensioners, in particular, need to be ready to act fast to secure the best rates. NS&I’s much anticipated Pensioners Bonds are due to launch in January. The bonds, only available to the over 65s, are expected to be extremely popular and sell out fast. With indicative rates of 2.80% for one year and 4% for three years, these rates are far higher than the nearest competition.
And don't forget to look at alternatives such as current accounts and peer-to-peer accounts, which are in many cases paying far higher rates than high street savings accounts. Just be aware of minimum funding requirements for current accounts. If you're looking at peer-to-peer, remember that your money is not protected by the UK Financial Services Compensation Scheme.
Compare the latest savings, ISA and peer-to-peer rates
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