Best savings rates are being pulled in hours by some providers

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Some savings providers are launching best buy accounts and withdrawing them within hours of launch as rates continue to rise.

As a result, it means savers may only have a short time to act or risk missing out on the top accounts. 

In recent months, savings rates have been rising quickly with new accounts frequently topping our independent best buy tables.

But many challengers and building societies have small funding targets meaning accounts can be pulled quickly – especially given the current heightened demand from rate-starved savers. 

Once enough cash has come in, providers will pull the deal.

For example, Close Brothers last week launched a market leading one-year fix paying 4.25 per cent and a tip two-year fixed cash Isa paying 4.15 per cent.

Both deals were launched on Wednesday at 9.45am. However, they were pulled by 4.38pm.

>> To stay up-to-date with the best rates as they happen, sign-up to our savings alert service. 

The last week has seen a number of similar examples. Yesterday, Charter Savings Bank withdrew its market leading one-year fixed rate paying 4.31 per cent, just four days after launch.

On Friday, Melton Building Society withdrew its 4.2 per cent 14-month fixed rate deal. It had only been available for a week.

Similarly Secure Trust Bank launched a 4.2 per cent one-year fix on Tuesday at 9.45am before closing the deal the next day at 1pm.

Last month, Castle Trust Bank, Newcastle Building Society and BLME all launched notable market leading fixed rate deals only to withdraw the products within days – some within less than 24 hours.

This is Money mentioned the launch of a market leading one-year deal by Newcastle, only for the deal to be withdrawn a few hours later.

A spokesperson for the mutual said at the time: ‘The one-year fixed rate bond was really popular and filled up very quickly so was withdrawn at lunchtime.’

While rates are rising savers may feel they have nothing to lose by holding off in the belief that if a best buy is withdrawn, there will soon be something even better in its place.

However, although it is true rates are rising at pace, best buys are not always being bettered immediately.

At the start of last week, Hargreaves Lansdown’s savings platform* was offering a six month fix paying 3.35 per cent. 

It has since been withdrawn and there are currently no six month deals available on the platform and no six month deals that come close to beating the deal which was withdrawn.

Zenith Bank’s six month deal paying 3 per cent* via the platform, Raisin UK, is the next best rate now available.

Those who sign up via the link above for the first time to Raisin and deposit £10,000 into the account will also secure a £30 welcome bonus. 

This means on a £10,000 deposits someone could essentially secure an effective return of £180 as opposed to £150 after six months.

Anna Bowes, co-founder of Savings Champion, said: ‘Some of the best savings rates have increased more than twofold since the beginning of December last year, just before the base rate started to rise – and are now paying more than they have for over a decade.

‘So, with some of the best rates being withdrawn within just hours, if you see a rate that you like the look of, it might be prudent to get on and open it.

‘All the time you are waiting for a better rate to come along, you are missing out on higher interest in the meantime.’

What are the best rates today?

While many of the major banks are still paying pitiful returns to savers, the best easy-access savings rates have jumped to as high as 2.5 per cent, with more than 13,300 increases made to variable accounts in the past nine months alone.

There are currently 10 providers paying 2 per cent or more. The best being Al Rayan Bank’s 2.35 per cent deal and Yorkshire Building Society’s 2.5 per cent deal – albeit the latter being only on balances up to £5,000.

Following Charter Savings Bank’s withdrawal today, Vanquis bank is the current market leading one-year fixed rate deal paying 4.25 per cent.

For the time being, Charter Savings Bank leads the way on the two-year front with a deal paying 4.62 per cent.

Nationwide is also offering the best three-year fix paying 4.75 per cent.

For savers wishing to protect the interest they earn from the taxman a cash Isa product may be best.

The best easy-access cash Isa deal is currently offered by Coventry Building Society’s 2.25 per cent deal – although it limits savers to only six fee free withdrawals per year.

In terms of fixed rate cash Isa deals, Shawbrook Bank and Gatehouse Bank are currently both offering one-year deals paying 3.7 per cent.

Gatehouse Bank is also home to the market leading two-year deal, paying 4 per cent.