Easy access savings accounts are now offering higher interest rates than notice savings accounts, according to Moneyfacts.co.uk.
Since United National Bank reduced the interest rate on its 3 Month Gold Deposit Account by 0.50 per cent to 3.00 per cent, Egg now offers a higher interest rate on its instant access savers account, which offers an interest rate of 3.25 per cent.
Customers can open an Egg easy access account with a £1 deposit, while the Citi Flexi Saver account offers an interest rate of 3.10 per cent AER, also with a £1 deposit.
Commenting on the news, Michelle Slade, spokesperson at Moneyfacts.co.uk says that although notice savings accounts have historically offered much higher rates than easy access accounts, Moneyfacts has found that 30 per cent of customers are now looking for easy access savings.
She said: "Providers are increasingly turning to their savings books to fund their lending activity. Those unable to compete in the ever competitive fixed rate bond market have moved to offering top rates on easy access."
Ms Slade added: "There is now no incentive for savers to invest their money in a notice account when they can get better rates and access to their money as soon as they need it."
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