Interest rates on savings products offered by UK personal and business bank account providers have increased in the face of high inflation, with savers taking notice of the trend.
According to recently revealed official statistics for October, the average rate paid on both instant access and notice savings accounts increased to a new 12 month high. Instant access accounts saw their average rate reaching 0.91 per cent this month, which represented an 0.12 per cent rise, while notice accounts have increased by 0.25 per cent to a new 1.17 per cent high.
There was a total of 2,345 savings products available to consumers by the end of September, the research results indicated. While this represented a slight drop off in comparison with August’s figures, it was 4 per cent higher than the number of savings products that were available in 2010, which numbered 2,254.
Savers were also found to have been contributing to their ISA savings accounts in record numbers. The tax-free accounts have proven to be more and more popular with savers, as research findings from Halifax indicate that the average balance on an ISA savings account was £8,500.
ISA savings levels were found to clearly correlate with the age of savers, the research found, with those between the ages of 25 and 34 were found to have £3,100 on average in their accounts, while those in the 34 to 44 year old age bracket had average balances of £4,798. This trend continued, as those in the 55 to 64 age range had balances in excess of £11,000 on average, the 65-74 age bracket had nearly £12,500 in savings, and those over the age of 75 were found to have an average of more than £14,000.