Things have picked up in the savings market again this week, with the top easy access rate we’ve seen so far in 2018 and the best one year bond in over two and a half years.
The latest move at the top of our easy access best buy table came from Coventry Building Society, which was determined to not be outdone by its rivals and is now offering the highest easy access rate so far this year.
Following its re-emergence in the three year table last week, Hampshire Trust Bank continued to make headlines by improving its one and two year bonds to hit the top of our respective fixed rate bond best buy tables.
The one year bond is particularly eye-catching, as it’s the highest rate we’ve seen in this area for over two and a half years!
There were other changes in the one year fixed rate bond market, though the efforts by Investec and Wyelands Bank were somewhat blown out of the water by Hampshire Trust.
If you’re looking for something a little different to standard fixed rate bonds, Sharia fixed term accounts may be worth considering, as they are among the highest-paying fixed term accounts available in today’s savings market.
Elsewhere there was little to report in the cash ISA arena, with few changes in our variable rate cash ISA and fixed rate cash ISA best buy tables – although they are worth a look, as there are still some competitive rates still on offer.
So, some interesting developments and hopefully there will be even more in the coming 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.
If you're unsure if cash is the best investment for you and feel you might benefit from speaking to a Chartered Independent Financial Adviser, we may be able to help you.
Or call us on 0800 011 9705
Easy Access Accounts
The recent activity in this key area of the savings market continued apace, with Coventry Building Society moving ahead of the pack by offering the highest easy access rate so far this year.
The provider’s Limited Access Saver is now paying 1.40% gross/AER, up from the previous rate of 1.35%.
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withdrawals per year, any withdrawals after that are subject to a penalty equivalent to 50 days’ interest on the amount withdrawn.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.
Fixed Rate Bonds
The one year bond table provided most of the action over the last week – with a couple of early changes that were swiftly trumped by the victorious Hampshire Trust Bank.
Atom Bank has been dominant for the last month or so, with providers mainly competing for second place in the table.
Good examples of this were Wyelands Bank* (1.97% gross/AER) and Investec (2.00% gross/AER) who made the early moves this time.
Then came the main event – Hampshire Trust Bank launching an improved one year bond paying 2.10% gross/AER, which is the highest rate in this category that we have seen since December 2015.
Not content with this, Hampshire Trust Bank also launched an improved version of its two year bond, paying 2.20% gross/AER and taking a share of the lead in our table.
In the three year table, top spot continues to be shared by Birmingham Midshires and Hampshire Trust Bank again – both paying 2.35% gross/AER.
Amongst longer term fixed rate bonds, Secure Trust Bank continues to 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
Not much change this week, but Sharia fixed term accounts are still paying rates which compare well with standard fixed rate accounts.
BLME currently dominates proceedings, 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 refer to our recent article for more on Sharia accounts and how they work.
Variable Rate Cash ISAs
There was little change in this area of the market this week, but the leading accounts still offer competitive options for those looking to utilise their cash ISA allowance.
Still in first position is Charter Savings Bank, paying 1.40% tax free/AER on its 95 day notice cash ISA.
Next is the top-paying easy access cash ISA, which comes from Al Rayan Bank, paying 1.35% tax free/AER.
For more information on these 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 there are still competitive rates on offer.
Coventry Building Society leads the way amongst short term fixed rate ISAs, paying 1.50% tax free/AER until 30 November 2019.
Elsewhere, Shawbrook Bank still 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 (*).
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