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Top savings rates are falling, but signing up to a platform could boost your interest

In times of uncertainty, it can be a good idea to prioritize your financial resilience before locking in your money.

The products presented in this article are independently selected by the specialized journalists of This is Money. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

Interest rates on the best fixed savings deals have fallen in recent weeks, after hitting highs not seen in more than a decade.

At the beginning of this month, the best one-year rates reached 4.65%. Now the best offer pays only 4.36%.

The best corrections over two years, three years and five years had moved to 5% or even more. Now, the best solution over two years returns 4.81%, the best over three years returns 4.85% and the best over five years returns 4.9%.

In times of uncertainty, it can be a good idea to prioritize your financial resilience before locking in your money.

Now or never? Fixed-rate savings appear to have reached the end of their upward trajectory – at least for now

Experts are urging savers who may have been sitting on the fence waiting for savings rates to rise further to grab the best deals while they can.

Rachel Springall, finance expert at Moneyfacts, said: “Savers will find that providers have revised their spot interest rates over the past few weeks, with a particular focus on fixed rate bonds.”

“Since the last inflation announcement, some of the major fixed-rate bonds have seen cuts, but more adjustments may be coming.”

Springall added: “Savers may need to act quickly if they want to take advantage of the current rates on offer.”

“Savers who are willing to lock in their money for a year will find that the top rate is significantly higher than last year at 1.35%.

“Notable improvements have been made in longer-dated fixed bonds since last year.”

– Find the best fixed rate savings deals on our independent best-buy tables

How to use a savings platform and get a cash bonus

One way for savers to find the best fixed rate deals is through savings platforms.

These platforms allow savers to register and manage accounts with different banks in one place. This means they can transfer money between providers and get the best rates with less administration.

Go online: While savings platforms don't have all the accounts out there, they tend to have some of the best deals out there.

Go online: While savings platforms don’t have all the accounts out there, they tend to have some of the best deals out there.

Platforms such as Hargreaves Lansdown and Raisin UK are currently home to some of these highest rates. Both are free and currently offer cash bonuses for joining.

First-time savers on Hargreaves Lansdown’s Active Savings* platform can win up to £100 in bonus cash. However, they will have to be quick because the offer ends at the end of the month.

The amount of cashback savers will depend on their investment. For example, those who invest £10,000 will get £20, while those who invest £80,000 will get £100.

Hargreaves Lansdown's platform is offering tiered cashback to new members until the end of this month

Hargreaves Lansdown’s platform is offering tiered cashback to new members until the end of this month

The best two-year solution on the Hargreaves platform returns 2.75% and its best five-year offer returns 4.9%*, matching the best offers in the broader market.

However, by counting the bonus cash with the interest it generates, savers will effectively get an even better deal.

For example, £10,000 in the best two-year fixed rate deal paying 2.75% will effectively increase to 2.85% with the added £20 bonus.

Raisin UK, another free savings platform, is currently offering a £30 welcome bonus to This is Money readers who open a new Raisin account through this link* or any link from our website.

It offers savers the chance to increase their savings by £30 when they open an account on its marketplace with a minimum of £10,000.

Its best one-year offer pays 4.36%*, its best two-year offer pays 4.75*, the best three-year offer pays 4.85%* and the best five-year offer pays 4.9%* – all online with the best rates you can get in the wider market.

Someone who saves £10,000 in Raisin’s best one-year deal can effectively get an interest rate of 4.66%, once the £30 bonus is included.

Should I register on a savings platform?

Cash held on savings platforms currently accounts for less than 1% of all UK savings, according to savings website, The Savings Guru.

However, savings platforms arguably simplify the process for savers by helping them track their accounts more easily and move money faster.

They may not always offer the best rates on the market, but they allow customers to manage multiple accounts in one place.

This means that with one online account, savers can open multiple savings accounts with many different banks as and when needed, without the usual form filling and administration.

For those with large amounts of savings, another key benefit of using a savings platform is that they are able to spread the FSCS protection granted to each individual banking license.

The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme, which provides protection of up to £85,000 per person or £170,000 in the case of joint accounts, with each bank or building society eligible with which they register.

By allowing savers to access multiple providers, savings platforms allow them to spread FSCS protection across their multiple holdings, without the need to apply for accounts individually with each bank.

For example, if they saved with six different banks which were all covered by the FSCS, they would be protected up to £85,000 in each account – notwithstanding any additional funds they might hold with the bank separately apart from the platform.

Currently, there are only a handful of savings platforms.

Rivals to Raisin and Hargreaves Lansdown include Flagstone, AJ Bell’s Cash Savings Hub and Aviva Save.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.

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