It’s been another exciting couple of weeks in the savings markets, with rates improving, sometimes significantly. And while there are no savings accounts available that are paying more than the latest rate of inflation, there is still competition pushing the best buy rates up.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (06/08/2021). All up-to-date rates can be found on our Best Buy tables.
At long last, it’s what we’ve been waiting for. After a pretty long time in the doldrums, there has been a flurry of activity in the Easy Access best buy tables. For a more detailed rundown, take a look at our article ‘More best buy ‘easy access’ accounts – but watch out for the catches’, however, in a nutshell, we currently have two accounts paying 0.60% AER (Cynergy Bank and Skipton Building Society) and another improving the rate for new AND existing savers, paying 0.58% AER (Investec). A significant improvement and the highest rates we’ve seen since December last year.
The top accounts do have some Terms and Conditions to be aware of, but it would be great to think that this could be the start of a bit more of a battle which could push rates even higher.
It’s really encouraging to see new notice accounts being launched paying better and better rates.
For those who are not sure they can tie up their money for a fixed term, notice accounts offer a halfway house – offering a bit more than easy access accounts for the inconvenience of waiting for perhaps three or four months.
Just a month ago the best 120-day notice account was paying 0.75% - today Hampshire Trust Bank’s 120-Day Notice Account (Issue 6) is paying 0.90% AER.
For those who don’t want to tie up their cash but don’t need immediate access, these higher rates could make notice accounts worth looking at again.
There have been some fierce battles over the last couple of weeks which has driven some of the best buy fixed rates up to the highest levels for over a year.
Once again, Zopa has been one of the key antagonisers, battling it out, in the main, with Tandem Bank – but as the week progressed, we thought that Zopa had won the battle of the one, two and three year best buy fixed rate bond tables.
Zopa’s 1-year bond is currently paying 1.12% AER, the highest rate available since October last year. Over two years Zopa is paying 1.36% AER, the best rate since September 2020, while the 3-year bond that the bank is now offering is paying the highest rate since June last year, at 1.43% AER.
However, Tandem Bank had a trick up its sleeve by launching a three year bond paying 1.44% AER - pipping Zopa by the narrowest of margins. This ongoing jousting is great news for savers.
It’s hard to believe that at the beginning of the year, the best 1-year rate was just 0.60% AER, the best 2-year rate was 0.80% and the best 3-year was 1%!
There has continued to be some activity in the Fixed Rate ISA market. Currently Shawbrook Bank is paying 0.74% tax free/AER for a 1-year Fixed Rate ISA, knocking Secure Trust Bank off the top spot, and just today Close Brothers released a 2-Year offering at 1.00%, the highest seen since October last year.
Over the other terms, while the very top rates have not increased, there has been some jostling for the other positions, with Shawbrook being a main contender.
On the flipside, at least the other strong providers in this market have held fast - they haven't been withdrawing their best buy rates.
We’ll keep an eye on what continues to transpire in the coming weeks.
The big news among the Variable Rate ISAs have been the return of Cynergy Bank to the top of the best buy table with Issue 14 of its Online ISA, paying 0.54% tax free/AER. The account had been previously available but the bank withdrew it from general sale at the beginning of July in order to offer it to existing customers only for a short period. Great news to see it back in the leading position.
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