🔔 Rates Rundown: the weather starts to cool, along with best buy activity…

While not reaching the heights of the last month or so, there has been a smattering of best buy activity over the last seven days – including the launch of several market-leading rates.

Perhaps the most eye-catching change over the last week came from Birmingham Midshires, making a rare appearance at the top of our easy access best buy table.

Birmingham Midshires also grabbed headlines within the fixed rate bond arena, with the launch of market-leading two and three year bonds.

Not to be outdone, Hampshire Trust Bank matched Birmingham Midshires’ three year bond to sit joint top of our table.

Also re-entering our best buys was ICICI Bank UK – with a one year account that now sits in third position in our table.

Over to Sharia accounts and BLME launched five and seven year accounts this week that are among the highest-paying fixed term accounts that are available to open in today’s savings market.

Elsewhere there were few changes to report in our variable rate cash ISA and fixed rate cash ISA best buy tables – apart from Virgin Money, which made improvements to selected accounts in its cash ISA range.

So, not exactly the level of activity to set the savings world alight but some interesting changes nonetheless – continue to watch this space and we will keep you up to date with all the latest news every week.

And remember to submit your review to rate any of your new or existing savings providers to help us provide insight for your fellow savers.

Easy Access Accounts

There was more activity over the last week in this key part of the savings market, with Birmingham Midshires re-entering our best buy table, after a lengthy absence.

The provider launched its Internet Saver account paying 1.35% gross/AER, joining two other providers at the top of our table.

While currently paying the top rate, it is important to note that this will not last forever – after 12 months, your money is transferred to a much lower paying alternative account - just 0.20% gross/AER – so reviewing your account at that time is a must.

National Counties Building Society remains joint top with its 4th Issue Classic Saver, also paying 1.35% gross/AER.

It is worth noting that the account requires a minimum balance of £5,000 and once we reach 31 July 2018, no further funds can be added to the account. So, it will not suit those who want to add funds after the end of the month.

Alongside these two providers is Coventry Building Society – its Limited Access Saver is again paying 1.35% gross/AER.

This account also has a number of terms and conditions to get your head around – you are able to make three easy access withdrawals per year, any withdrawals after that are subject to a penalty equivalent to 50 days’ interest on the amount withdrawn. In addition, the rate includes a 0.35% bonus for the first 12 months, so the rate will drop after the first year.

Then comes Bank of Cyprus UK, with its Online Easy Access Account paying 1.34% gross/AER*.

The account from Bank of Cyprus UK also has an introductory bonus, so the rate will fall after the first year and you may need to look at an alternative at that point.

All four of these accounts have features to be aware of, from restricted withdrawals to introductory rates, so it is important to us to ensure that our top five always includes a straightforward account – for those that prefer a simple and easy to understand option.

Performing this role currently is Paragon, with its Limited Edition Easy Access (Issue 6), paying 1.31% gross/AER.

For more information on each of these accounts, please take a look at our easy access best buy table.

Fixed Rate Bonds

Following a quiet week previously, there was a definite increase in activity over the last seven days, with a number of providers making a play for the best buys.

Not content with just going for the easy access crown, Birmingham Midshires also looked to re-enter the top of the fixed rate bond market.

The provider’s new two year (2.20% gross/AER) and three year (2.35% gross/AER) fixed rate bonds both jumped straight to the top of the respective tables.

In the two year table, the provider joined Investec (also 2.20% gross/AER) at the top, just edging ahead by virtue of a much lower minimum opening balance requirement – just £1, as opposed to £25,000 with Investec.

In the three year table, Birmingham Midshires ruled the roost over last weekend, until Hampshire Trust Bank joined them at the top early the following week – matching the 2.35% gross/AER rate on offer.

While not scaling the dizzy heights of first position – ICICI Bank UK launched a competitive new one year fixed rate bond paying 1.95% gross/AER, taking third position in our table.

Atom Bank remains top for one year (2.05% gross/AER), with OakNorth next in line (1.96% gross/AER).

Amongst longer term fixed rate bonds, Secure Trust Bank continues for lead the way for both four years (2.51% gross/AER) and five years (2.67% gross/AER).

For more information on each of these accounts and for other options, please refer to our full fixed rate bond best buy tables.
 

Sharia Accounts

If you’re looking for something a little different to standard fixed rate bonds, Sharia fixed term accounts may be worth considering.

This week BLME grabbed the headlines, launching a new version of its five year account that pays one of the highest returns in the savings market today – 2.70% gross/AER*. For those happy to tie up funds for even longer, its new seven year account pays 2.75% gross/AER*.

If you’re looking for shorter terms, BLME also leads the way currently, paying 2.35% gross/AER for three years* and 2.05% gross/AER for one year*.

Please refer to our Sharia account best buy table for more information on the accounts above and refer to our recent article for more on Sharia accounts and how they work.

Variable Rate Cash ISAs

There was only one significant change in this area of the market this week, with Virgin Money joining the leading accounts for those looking to utilise their cash ISA allowance.

Virgin Money launched a new version of its Double Take E-ISA paying 1.35% tax free/AER - good enough to take third position - but allowing just two withdrawals a year may be off-putting for some.

In first position is still Charter Savings Bank, paying 1.40% tax free/AER on its 95 day notice cash ISA.

Next in line is an easy access cash ISA from Al Rayan Bank, paying 1.35% tax free/AER.

For more information on all three accounts and other options, take a look at our variable rate cash ISA best buy table.

Fixed Rate Cash ISAs

Again, few headlines this week in this area of the market, but most of the leading accounts from last week are still in place.

Wesleyan Bank is paying a market-leading rate of 1.55% tax free/AER for one year, though it is worth noting that the account requires a comparatively high minimum opening balance of £20,000 - so may not suit those with smaller amounts to save.

Next best is Bank of Cyprus UK – paying 1.52% tax free/AER*.

Elsewhere, Shawbrook Bank dominates the leading positions in our two, three and five year tables, paying 1.70% tax free/AER, 1.85% tax free/AER and 2.30% tax free/AER respectively.

Further information on these accounts, along with other leading rates that are currently available, can be found in our fixed rate cash ISA best buy tables.

Our Bath based savings experts are on hand if you would like any help with your savings, so why not give us a call on 0800 011 9705, we’d love to hear from you.

Alternatively, if you want to keep up to date with best buy rates as they hit the market, follow us on Twitter and sign up to our Rate Alert emails.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

You might also like...