Perhaps the biggest news of the last few weeks has been RCI Bank’s Freedom Savings Account blowing the competition out of the water in the easy access market, following several weeks of jostling for position in our best buy table. If you missed Anna's view, click here for further information.
RCI Bank also made improvements to its Fixed Rate Bond range, alongside improved four year and five year fixed rate bonds from Vanquis Bank and an improved three year bond from Masthaven Bank.
Elsewhere, Virgin Money launched a market leading Fixed Rate Cash ISA and Variable Rate Cash ISA, along with a new easy access account that made it into our best buy table.
RCI Bank has increased the rate on its Freedom Savings Account, from a market-leading 1.02% to an even higher rate of 1.10% gross/AER. Accounts can be opened online with a minimum of £100 and interest can be paid on an annual or monthly basis.
RCI Bank continues to make waves in the easy access market, having now increased the rate on this account three times this month, with the latest move taking it nicely ahead of the competition.
RCI Bank also improved the rates available on its Fixed Rate Bond range. The 1 year bond is paying 1.31% gross/AER, the 2 year bond is paying 1.55% gross/AER and the 3 year bond is paying 1.70% gross/AER. Accounts can be opened online with a minimum of £1,000.
All of these accounts can now be found in our Fixed Rate Bond Best Buy Tables and it is good to see the provider making its fixed rate bond range more competitive, to go alongside its market-leading easy access account.
It is worth noting that deposits held with RCI Bank are covered up to the value of €100,000 by the FGDR, which is the French equivalent of the UK Financial Services Compensation Scheme (FSCS). If you would like more information on this, please call 0800 321 3581 to talk to one of our advisers.
Also reviewing its range of fixed rate bonds is Vanquis Bank, with the pick of the new rates below;
4 Year Fixed Rate Bond - 1.96% gross/AER
5 Year Fixed Rate Bond - 2.02% gross/AER
Accounts can be opened online with a minimum of £1,000 and you can choose to have interest paid on an annual or monthly basis.
This provider is back in the market for longer term bonds, with the four year bond now the market leader and the five year bond beaten only by Atom Bank and Ikano Bank (both paying 2.05%).
Of the three, the Vanquis Bank bond is the most straightforward, as the bond from Atom Bank can only be applied for through a mobile app and deposits held with Ikano Bank are covered by the Swedish equivalent of the UK Financial Services Compensation Scheme (FSCS).
Meanwhile, Masthaven Bank has improved its 3 year fixed rate bond, now paying a competitive 1.70% gross/AER. Accounts can be opened online, with a minimum of £500.
Again, this bond is beaten only by Atom Bank and Ikano Bank in our best buy tables.
In addition, the provider gives you the option to choose your own term, which is a nice feature. So, for the exact interest rate for your chosen term, please see Masthaven Bank's website.
Finally, Virgin Money made several changes last week to its standard savings accounts and cash ISAs.
The provider launched a new 1 year fixed rate cash ISA paying 1.05% tax free/AER, joining Bank of Cyprus UK at the top of our best buy table. Accounts can be opened online, in branch or by post, with a minimum of £1 and transfers in of previous ISAs are accepted into the account.
There were also changes from the provider that affected our Easy Access and Variable Rate Cash ISA best buy tables.
The Defined Access Saver Issue 10 pays 1.01% gross/AER and can be opened online, in branch or by post with a minimum of £1. You are limited to three withdrawals per calendar year, if you make four or more withdrawals, the interest rate will drop to 0.25% for the remainder of that year.
An improvement in the rate on offer from the previous version of this account (0.95%), though not enough to challenge RCI Bank at the top of the table.
However, there was even better news for those looking for new Variable Rate Cash ISA, as the Defined Access ISA is now the top rate on the market.
The Defined Access ISA Issue 11 pays 1.01% tax free/AER and can be opened online, in branch or by post, with a minimum of £1. You are limited to three withdrawals per calendar year, if you make four or more withdrawals, the interest rate will drop to 0.50% for the remainder of that year.
If you would like to discuss further options or would like any help with your savings, please get in touch. Our Bath-based savings experts would love to hear from you, so call us on 0800 321 3581.
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