🔔 Rates Rundown: Improved rates as providers begin to react to the base rate rise…

This week, as widely expected, the base rate rose to its highest level for over nine years and we have seen several providers improve their rates – perhaps the start of better things to come?

The most eye-catching change of the week came from Wyelands Bank – hitting the summit of both the one year* and two year* best buy tables. The one year bond is particularly noteworthy as it is the highest rate we have seen for this term since December 2015.

Also launching a market-leader was OakNorth, this time a notice account, with the provider now accounting for two of the top five positions in our notice account best buy table.

Also joining in the act was Charter Savings Bank, launching market-leading three and five year fixed rate bonds, competitive one and two year fixed rate bonds and a 95 day notice account.

We also saw a rare appearance in our best buys from Furness Building Society, with its two year bond sitting just behind the market leader.

Elsewhere there were fewer changes, with Coventry Building Society still topping our easy access best buy table.

So, some interesting initial moves and hopefully there will be even more in the coming days and weeks, so continue to watch this space and we will keep you up to date with all the latest news.

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.

Fixed rate bonds

Wyelands Bank grabbed the headlines this week, with market-leading new versions of its one year fixed rate bond* (2.15% gross/AER) and two year fixed rate bond* (2.25% gross/AER) hitting the shelves.

The one year bond is the highest we have seen in this category since December 2015.

Charter Savings Bank has also been busy this week, launching a new market-leading three year fixed rate bond (2.36% gross/AER) and five year fixed rate bond (2.68% gross/AER).

The provider also launched a new one year fixed rate bond (2.01% gross/AER) and two year fixed rate bond (2.19% gross/AER), which fall short of Wyelands Bank but are still in and around the top five accounts.

Last but not least, Furness Building Society made a rare play for the best buy tables, with its two year fixed rate bond paying 2.24% gross/AER - sitting just behind Wyelands Bank.

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

Notice accounts

OakNorth was the prime mover this week in this category, taking top spot in our best buy table and third position as well.

The provider’s new 120 day notice account pays 1.78% gross/AER and takes first place, whereas its new 90 day notice account pays 1.73% gross/AER.

Charter Savings Bank was also active in this category, with its new 95 day notice account paying 1.75% gross/AER sitting right between the two accounts from OakNorth.

For more information and other alternative accounts, take a look at our notice account best buy table.

Sharia Accounts

No change this week, but Sharia fixed term accounts may still be worth considering as they are often paying rates which compare well with standard fixed rate accounts.

BLME currently dominates our table, with 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 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 read our recent article for more on Sharia accounts and how they work.

Easy access accounts

Following recent increased activity in this area of the market, this was a much quieter week, with Coventry Building Society still ahead of the pack.

The provider’s Limited Access Saver is paying a market-leading 1.40% gross/AER.

This account has a number of terms and conditions to be aware of – 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 0.40% bonus for the first 12 months, so the rate will drop after the first year.

Next up is Birmingham Midshires with its Internet Saver account, which is paying 1.35% gross/AER.

It is important to note that after 12 months, your money is transferred to a much lower-paying alternative account - just 0.20% gross/AER – so reviewing your account after the first year is essential.

Then comes Tesco Bank and Bank of Cyprus UK*, which both pay 1.34% gross/AER.

Both of these accounts have an introductory bonus, so the rates will fall after the first year and you may need to look at alternatives at that point.

As all four of these accounts have features to be aware of, from restricted withdrawals to introductory rates, 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 is still 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.

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 (*).

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