![]() ![]() ![]() Tracker accounts do still beat some of the paltry rates on offer from high street banks, which have recently drawn criticism from the Financial Conduct Authority, which said certain banks had been much quicker to pass on higher interest rates to mortgage borrowers than savers. “The key regarding whether to choose a tracker account is really down to what you believe will happen to the base rate, as the rate is guaranteed to react to any base rate announcement,” said Anna Bowes of .uk. This could happen, but the base rate would be unlikely to stay this high for very long. Chip pays the current market-leading rate of 3.71pc, which would only be topped by Skipton’s tracker account if the base rate went above 4.81pc. Similarly, a “normal” easy-access account can beat the tracker option. Given its terms, the tracker account would only beat this rate if the base rate were to rise to more than 5.25pc, which is higher than experts have predicted. Can savings tracker rates be beaten?Īs it stands, none of the savings tracker accounts pay a market-leading rate when compared to equivalent fixed-rate or easy-access accounts.įor instance, the top-rate two-year fixed-rate bond from Isbank pays 5pc, compared to the 4pc two-year tracker from Family Building Society. This account doesn’t track the base rate instead, it changes monthly based on the average of the 20 highest cash Isa rates on the market. If you’re looking for a tax-free option, Family Building Society offers a Market Tracker Cash Isa paying 2.98pc. The interest rate is guaranteed to never fall more than 5pc below the base rate – at term that would only be of use if the base rate was far higher. Savings between £50 and £500 receive 1.35pc, and you’ll get 1.4pc if your balance tops £500. The account has a two-year term, after which it will be transferred to a new easy-access account, and you can make unlimited withdrawals.ĭudley Building Society also offers an easy-access tracker account, but the rates on offer are pretty negligible. If you want to keep access to your money, Skipton Building Society’s Base Rate Tracker Account pays 3.15pc – the base rate minus 1.1pc. It pays 0.25pc below the base rate, and you have to commit for the full two years – during which time the base rate could change significantly. The highest paying tracker account on the market is the Family Building Society 2 Year Tracker Rate Bond, which is currently at 4pc. There are only a small number of savings tracker accounts on the market and, while they do track the base rate in some way, it may not be how you’d expect. Here, Telegraph Money sets out everything you’ll need to weigh up before making this big savings decision. ![]()
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