As we wait for the next Monetary Policy Committee (MPC) meeting on 16th December, the good news is that we have continued to see some new market leading accounts being launched – although the activity has slowed a little.
Nevertheless, those who are vigilant can eke a little more interest out of their cash by shopping around.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (26/11/2021). All up-to-date rates can be found on our Best Buy tables.
In our last Rates Rundown Cynergy Bank had been knocked off its perch by Shawbrook Bank, who pipped Cynergy by 0.01% with its Easy Access Account Issue 28 paying 0.67% AER.
Well this week, Cynergy fought back with a new issue of its Online Easy Access Account. Issue 43 is paying 0.70% AER on balances from £1.
And then at the last minute this week, Aldermore has increased the rate on its Double Access Account Issue 1, from 0.60% to 0.75% * - and this rate rise is for both new and existing customers.
The last time we saw an easy access account paying 0.75% was mid-November last year. Since then we have seen best buy easy access rates dropping to as low as 0.45% - so it’s good to see some sort of recovery.
There’s been no change at all in the Notice Account Best Buy table – the best account is a 120-day notice account with Secure Trust Bank paying 1.10% AER while Close Brothers has a 95 Day Notice account paying 1.05% AER. Perhaps still worth a look for those who don’t need immediate access to their cash.
Long term gilt yields are often an indication of what the markets expect to see from interest rates going forward – and having peaked towards the end of October, 10 year UK gilt yields have since fallen slightly. Perhaps as a result of this, activity in the fixed rate bond markets has slowed although there have still been some new market-leading accounts that have been launched over the last couple of weeks.
In the 1-year table Zopa was joined at the top by Wesleyan Bank and Masthaven, all paying 1.35% - but Investec has since pipped them all by launching a market-leading bond paying 1.36% AER.
Zopa managed to hold onto the top spot in the 2-year table paying 1.61% AER, but Smart Save has matched them with its new 2-year bond paying 1.61% AER also, although the minimum on the latter is much higher at £10,000 compared to £1,000 with Zopa. Both bonds need to be opened online.
Over three years, it’s Smart Save once again that has jumped to the top spot offering 1.83% AER. UBL and Zenith are both in second place paying 1.82% but are also available via the Raisin UK cash platform*. If you are new to Raisin, you could add a £50 bonus to the interest you earn on the first account you fund, which would edge it into 1st place.
Finally, over five years, UBL is still leading the way, either directly or via Raisin UK* with a bond paying 2.05%, the highest 5-year rate since February 2020! But Secure Trust Bank has also launched a new bond paying the same rate – so yet more choice.
Just to be clear, although Secure Trust Bank has been known to apply a new higher rate to existing as well as new customers, this time it is a new bond, so the rate of 2.05% will only apply to new customers.
Fixed Rate ISAs have also been much quieter over the last couple of weeks – but a couple of battles have occurred, nevertheless.
Over 1-year, Castle Trust is back with a new market-leading 1-year Fixed Rate e-Cash ISA paying 0.96% AER, which is a new record for the year.
Over two years there was some short-lived excitement as the West Brom Building Society launched a market leading ISA paying 1.25% but it was only available for a few days and has now been withdrawn leaving Secure Trust Bank as the current leader paying 1.20% AER.
Similarly, over three years the West Brom launched a briefly market-leading ISA paying 1.50% AER – and now it’s gone, once more Secure Trust Bank as well as United Trust Bank are back in the lead paying 1.35% AER.
Finally, like the 1-year table, the 5-year Fixed Rate Cash ISA table also has a new leader offering the highest rate all year. UBL UK’s latest 5 Year Fixed Rate Cash ISA is paying 1.66% tax free/AER, pipping the Furness Building Society, Secure Trust Bank and United Trust Bank which are all paying 1.65% AER.
So, a much less exciting couple of weeks for Fixed Rate ISAs.
The Variable Rate Cash ISA table has seen virtually no action and the top spot is still help by Shawbrook Bank with its Easy Access Cash ISA Account Issue 18 paying 0.67%.
The only thing to report is that Tesco Bank squeezed into the bottom spot, matching Marcus by offering 0.60% on the latest issue of its Instant Access Cash ISA. But this rate includes a whopping 0.50% bonus for the first 12 months, so the rate will drop away at that point and therefore you’ll need to move your ISA once that happens.
That’s it for this week – I hope to bring you a bit more in the way of good news next time. Let’s hope the competition continues. In the meantime keep an eye on our best buy tables.
*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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