Rate wars heat up as savings accounts hit 8pc
The launch of Nationwide’s eight per cent savings account last month has put further pressure on peer-to-peer lenders to keep pace.
The building society’s Flex Regular Savings account, which was available from 21 September, is the best rate on the market for a decade.
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It’s not the only competitive deal available. According to Money.co.uk, Ford Money is offering two fixed rate bond accounts paying 6.05 per cent, over an 18-month or a two-year fixed term.
Meanwhile, the top-paying cash ISA as of 6 October was at UBL. Savers were being offered 5.86 per cent to lock their money away for one year.
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P2P lending platforms have also been increasing their rates in an effort to compete with savings accounts. easyMoney last month unveiled its latest rate hikes, which will bring its returns to between 5.28 per cent and 10 per cent. Similarly, property lender Loanpad has been raising investor rates almost every month for the past year, with its investors now earning between 5.5 and 6.3 per cent.
Folk2Folk, Kuflink and CrowdProperty have all increased their target returns this year to between 8.75 and 10.5 per cent.