🔔 Latest Savings Rate Rundown

Whilst on the whole, the last few weeks have been relatively quiet for new accounts launched and the trend for lower rates on offer from providers continues, there have been a group of interesting accounts launched in the Easy Access, Fixed Rate Bond and Fixed Rate Cash ISA sections of the savings market.

Tesco Bank has improved its Easy Access offering, moving into second place in our best buy table as a result.

Charter Savings Bank has launched new versions of its 1 and 2 year bonds, going straight in at the top of the respective best buy tables.

Clydesdale Bank and Yorkshire Bank launched a 16 month fixed rate cash ISA that not only compares favourably to other shorter term ISAs, but is not far behind the best 2 year fixed rate ISAs on the market at the moment.

Finally, a reminder for those holding a Variable Rate Cash ISA with Punjab National Bank that the rate is due to be cut shortly, so now is the time to look at a possible replacement.
 
 
Tesco Bank has launched a new version of its Internet Saver paying 1.27% gross/AER (the previous version was 1.21%). The interest rate includes a 0.52% bonus for the first 12 months and the account can be opened online with a minimum of £1.

A positive move from Tesco Bank, with the account going straight into our Easy Access Best Buy Table in third position. At the time of writing, the account has now moved into second place, following the withdrawal of a best buy from West Bromwich Building Society later in the same week.

Whilst it is still more common to see providers withdraw best buys, this move at least shows that some providers are putting rates back in the right direction and the more that do so, the better.
Charter Savings Bank has launched a new version of its 1 Year Fixed Rate Bond paying 1.79% gross/AER, replacing the previous version which was paying 1.66%. The provider has also launched a new 2 Year Fixed Rate Bond paying 1.91% gross/AER, a section of the market that the provider has been absent from since early May. Also improved is the provider’s 18 Month Fixed Rate Bond, now paying 1.85% gross/AER (the previous version paid 1.70%). All bonds can be opened online with a minimum of £1,000.

After a six week absence, it is good to see Charter Savings Bank return to the 2 year fixed rate bond market, particularly as it goes straight to the top of the pile. It is also encouraging to see improvements made to both its 18 month and 1 year bonds, particularly as the 1 year bond was already the market leading rate. By not just remaining content in its position at the top and actually improving the rate on offer, those looking for a shorter term bond can only benefit from this move.

Clydesdale Bank and Yorkshire Bank has launched a new Cash ISA Fixed Rate Bond (Issue 36), paying 1.35% tax free/AER until 31/10/2017 (roughly 16 months). Accounts can be opened by post or in branch with a minimum of £2,000.

Whilst the term is longer, the rate is significantly higher than the best 1 year fixed rate ISA on the market at the moment (1.25%) and not far off the best two year options at the moment (1.40%). All in all, this makes this an interesting addition to the market, particularly as new best buy fixed rate ISAs are few and far between at the moment.

Finally, as a reminder for those holding the account, Punjab National Bank has announced that its Variable Rate Cash ISA will reduce from 1.45% to 1.05% tax free/AER for both new and existing account holders from 10^th August 2016. Having featured in our Variable Rate Cash ISA Best Buy Table until the change was announced, many will have opened the account and with the rate dropping to a much less competitive level from August, now is the time to look at alternatives.