- Deposits in banks and building societies rose £0.2 billion in November, a significant drop from £18.8 billion in October.
- We paid £3.4 billion into easy access accounts paying interest, and £1.7 billion into easy access accounts paying no interest.
- We paid £2 billion into cash ISAs in November.
- We withdrew £2.6 billion from fixed rate savings.
- The average rate on new fixed accounts fell 14 basis points to 4.02% and the average easy access rate rose from 2.11% to 2.21% in November.
- Mortgage approvals for house purchases fell to 65,700 – but are above the 12-month average of 60,400.
- Approvals for remortgaging (which only counts remortgaging with a different bank) fell to 31,200. They’re above the 12-month average of 30,000.
- The rate on new mortgages fell 11 basis points, to 4.5% – the lowest since April 2023.
The Bank of England reported on effective interest rates for November: Effective interest rates – November 2024 | Bank of England
It also issued its Money and Credit report for November: Money and Credit – November 2024 | Bank of England
Mark Hicks, head of Active Savings, Hargreaves Lansdown:
Savings
“A post-Budget pause marked the start of a seasonal slowdown in savings. Savers had been squirreling away cash ahead of the Budget, and after the announcement didn’t hit quite as hard as they had feared, they took their foot off the savings accelerator. The broader market is behaving slightly differently from Active Savings clients, who remained committed to savings throughout the month. However, wherever people save, we can expect December to be a slower month for savings, as Christmas absorbs more available cash.
Easy access accounts continued to dominate, as savers were drawn to the fact they could make more interest without tying their money up. However, we’ve seen a shift in rates over the past couple of months. By the end of December, easy access rates had fallen in the wake of the base rate cut in November. Meanwhile, average short-term fixed rates fell a little in the wake of the cut, but have held up impressively since then, as inflationary pressures on both sides of the Atlantic started to build, and banks believed that rates are likely to remain higher for longer.
It means average easy access and fixed rates are moving closer together at the moment, and although the very top of the easy access table still beats the top fixed rate returns, once you move a few places down each table, easy access and one-year accounts are offering very similar deals. We can expect fixed terms to overtake easy access in the coming months, and for the savings market to normalise.
This is all good news for savers. Saver behaviour is unlikely to switch dramatically overnight, so December’s figures may well see easy access remain popular. However, given that there’s less to gain in the short term, savers should seriously consider fixed rate deals for money they don’t need for emergencies. Anyone who can afford to lock cash away should take advantage of the higher fixed terms that are on offer.
The ISA season kept rolling in November, with another £2 billion paid into cash ISAs during the month, even as pre-Budget tax speculation died away. It’s a sign that although the immediate threat of tax changes has gone, savers are aware of the ever-present threat posed by frozen tax thresholds at a time of higher savings rates.”
Sarah Coles, head of personal finance, Hargreaves Lansdown:
Mortgages
“Mortgage approvals fell in November, after rising for three consecutive months. Buyers took a post-Budget break and the seasonal slowdown started to kick in. This wasn’t a dramatic turnaround, and approvals are still well ahead of the average for the past 12 months, but it’s notable – particularly given that the market was expecting things to pick up as we head towards the end of the stamp duty holiday.
There’s every chance this is a seasonal blip, and the market comes roaring back in January. Falling mortgage rates, a tax deadline, and the enthusiasm that tends to come with a New Year, means we may well see higher approvals return.
For those with a remortgage around the corner, the fact that the Bank of England shows mortgage rates falling in November and Moneyfacts shows them falling very slightly in December means there’s some good news to celebrate. However, your new rate is still going to be higher than your old one, so it’s going to be vital to shop around. The fact that the HL Savings & Resilience Barometer shows that households with mortgages only have a grand total £363 left at the end of a typical month means that every penny counts during the remortgage process
