SAVING GRACE

LOOKING FOR A NEW SAVINGS ACCOUNT? HERE ARE SOME KEY BENEFITS AND PITFALLS FOR YOU TO CONSIDER. BY VICKY SHAW

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A NEW tax year starts in April and the choice of savings deals has recently ballooned - meaning now could be a good time for you to start the search for a new savings account.

With the Bank of England base rate having been reduced to 4.5% in February, it’s worth checking whether the rates on savings accounts have already been trimmed back.

Savers in a poor-paying account may want to switch to a better deal, particularly with the eroding impacts of inflation on their returns.

This is because Consumer Price Index (CPI) inflation recently rose to 3%, surpassing the expectations of analysts.

On the plus side, there is at least a good amount of choice.

Financial information website Moneyfacts recently reported that, in February, the number of savings accounts on the market, including ISAs, reached the highest point since records started in 2007, with 2,157 savings deals available.

There are also strong signs of people having an appetite to start a savings habit this year.

New research from Marcus UK by Goldman Sachs reveals that 34% of people plan to save more in 2025 and 31% will try to spend less.

Spending regrets from last year may be one motivation behind people looking to save more and spend less in the months ahead.