Savers may be forced to spend an extra £22billion on big purchases or life milestones such as buying a house, car or getting married as a result of coronavirus. Recent research from RCI Bank showed three in five (61 percent) UK consumers who were saving for a milestone have had to delay as a result of the pandemic.

“Although many haven’t been able to bolster their savings, we are encouraged to see that a large number of UK adults have managed to use the past year as an opportunity to save more and are starting to plan to put that extra money towards something important to them.

“At RCI Bank, we understand that savings are there to be spent on the important life milestones and events, and having the extra time to save a bit more to make that specific life event extra special is a silver lining for some, which has come as a result of the last year.

“It is important, however, for savers to ensure they leave themselves a bit of a buffer, to maintain an emergency fund to weather any unforeseen expenses in the future.

“RCI Bank offers a range of savings products at competitive interest rates to suit your savings needs, and we have recently launched an app, making saving on the go even easier.”

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According to RCI Bank’s website, there are currently seven savings accounts available.

These are as follows:

• Freedom Savings Account: Easy access: 0.40 percent AER gross variable
• Fixed Term Savings Account 1 year: 0.40 percent AER gross
• Fixed Term Savings Account 2 years: 0.60 percent AER gross
• Fixed Term Savings Account 3 years: 0.75 percent AER gross
• Fixed Term Savings Account 4 years: 0.90 percent AER gross
• Fixed Term Savings Account 5 years: 0.95 percent AER gross
• 95 Days’ Notice: 0.45 percent AER gross variable

“Indeed, in recent weeks, challenger banks have been injecting some competition back into the fixed bond market, which is great news for savers looking for a decent return and are happy to lock their cash away.

“Clearly there is appetite for deposits, but not all savers will be prepared to tie up their cash and should they be considering an easy access account, it’s safe to say that rates are not looking very enticing.

“The average rate on easy access accounts sits at an all-time low, but savers may still choose these vehicles due to their flexibility, particularly if they have been hit financially by the pandemic and wish to have their cash readily available to them.

“As savers continue to favour these accounts, it will be interesting to see how providers cope with demand in the months to come, as there is little difference now between rates in the top rate tables. Regardless of this, there is still an incentive for savers to switch if they have their cash stored with their high street bank, as they could be earning as little as 0.01 percent.

“Savers would be wise to keep a close eye on the top rate tables and sign up to any rate alerts as speed remains a crucial aspect to grab an attractive deal. However, even if savers are not chasing down a table-topping rate, the pandemic has enforced the importance for consumers to build an emergency fund and that is evident from Bank of England deposit statistics. Now as lockdown eases, it’s important that consumers stay grounded with how they spend their cash and to keep aside some money to cover essential outgoings just in case.”