The choice of cash savings deals has grown to the highest level since the UK coronavirus lockdowns firs began in March 2020, according to a financial information website.
Moneyfacts.co.uk reports that some 1,639 products including Isas are available, marking the highest total since 1,768 in March 2020. It also reported that the number increased by 66 month-on-month in October.
Within the total, the choice of cash Isas is also at its biggest since March 2020, with 380 deals, the highest number since March 2020 when there were 417 products available. The average easy access saving s rate also edged up slightly last month to 0.18%, from 0.17% a month earlier.
The average “no notice” Isa rate rose slightly to 0.25%, however, the typical Isa rate where savers have to give some notice to access their cash remained unchanged, at a record low of 0.31%.
For savers who are able to lock their money away for a year, Rachel Springall, a finance expert at Moneyfacts, said the average one-year fixed bond rate is at its highest level since June 2020, at 0.76%.
The average one-year fixed-rate Isa meanwhile pays significantly less, at 0.53%.
She said: “We have recorded the biggest margin between the one-year fixed bond and Isa average since September 2012, so savers will receive 0.23 (percentage points) less from a one-year fixed Isa than a fixed bond equivalent on average.
“Savers considering their options in light of the interest rate rises on fixed bonds may well be moving their cash around to take advantage.”
Meanwhile, digital bank Zopa has raised £220 million to drive its next phase of growth, supporting its plan to become the strongest performing digital bank for savings and lending in the UK.
The round was led by Softbank Vision Fund 2, with participation from Chimera Abu Dhabi. The round was further supported by existing investors IAG Silverstripe, Davidson Kempner Capital Management LP, NorthZone, and Augmentum Fintech.
The deal is currently pending regulatory approvals from the PRA and the Financial Conduct Authority (FCA).
Zopa’s most exciting innovations will enable users to improve their financial health, gain access to better priced credit, access saving products based on individual preferences towards interest and flexibility, and to transfer card balances in a way that helps pay down credit faster.
Its recent partnership with ClearScore offers a Zopa pre-approved credit card to users who may have previously been declined credit products, while its integration with CreditLadder makes it possible for renters with thin files to improve their credit score by reporting their rental payments.
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Jaidev Janardana, CEO at Zopa said: “In a very crowded ecosystem that often focuses on current accounts or other free money management offerings, Zopa meets customer needs by focusing on how they borrow and save, the two things that have the most impact on their finances.”
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