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In the new world, savers must act fast or risk disappointment
One unintended consequence of the depressed savings market is savers are now savvier. They take notice and act quickly when a top-paying account launches.
This also means those slower off the mark miss out.
Back in the days when you could routinely earn 5% or more on your cash, people could be forgiven for taking a more relaxed approach to their savings.
In today’s environment, where rates of 1% or less are more the norm, savers need to be on the ball when a market-leading rate is unveiled.
And it appears they have got the message.
Ford Money is the latest provider to launch a headline-grabbing deal only to close it days later due to high demand.
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Its regular saver and regular cash ISA products – both paying 4% – launched on Monday. Two days later, both are now closed to new applicants.
Ford isn’t the first provider this year to pull best buy deals weeks or days after launch because of unprecedented levels of demand.
In February, a fortnight after launch, Tesco Bank paused applications for its current account which guaranteed 3% interest on balances up to £3,000 for two years, after receiving tens of thousands of applications per day in the first week. The deal reopened in April, but with stricter criteria.
Atom Bank was also forced to cut rates on several of its market-leading savings products weeks after launch, leaving many savers disappointed.
It helps that these deals get plenty of media attention. But the fact they fill up in a matter of days shows savers are smarter than ever and waste no time when it comes to jumping on top rates.
With the average easy access savings account paying a measly 0.38% and inflation hitting 2.7% and rising, it’s more important than ever for savers to keep track of their accounts and to know exactly what they’re earning.
The reality is though that simply being clued up on which provider is paying the best rates is not enough. Savers can’t wait; they need to apply as soon as possible to avoid disappointment.
Joanna Faith is editor of YourMoney.com