There has been a huge flurry of activity over the last couple of weeks, with some new rate-busting accounts launched – the highest in well over a decade. And with yet another base rate increase, there is bound to be more to come – but what accounts are likely to see more rate rises? The good news for savers is ongoing.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (12/05/2023). All up-to-date rates can be found on our Best Buy tables.
It’s been another good couple of weeks for the Easy Access best buy table and Chip has retaken the top spot having been pushed off by Shawbrook previously.
The activity started during the 1st bank holiday, with Chip increasing the rate on its Instant Access Account to 3.71% - taking back a decisive lead and pushing Shawbrook into 2nd place.
And although no-one has challenged Chip for the top spot, Al Rayan has increased the rate on its Everyday Saver Issue 3 to 3.56% - a rate rise that will benefit both new and existing customers – and Cynergy Bank launched Issue 60 of its Online Saver account paying 3.55%
The latest base rate rise means that there could well be more increases to come, so watch this space. But don’t hang around waiting – get switching now to start earning more interest.
We shouldn’t forget about the quiet but relentless rate rises in the Notice Account table that we’ve seen over the last few weeks – nothing as dramatic but the top rates available continue to nudge upwards.
Cynergy Bank is not often spotted in the notice account best buy table but it launched new market leading 120 Day and 95 Day Notice Accounts, paying 4.10% and 4% respectively. However, Oxbury was not happy with being knocked off the top spot, so retaliated with three new notice accounts; 180 Day Notice Account Issue 12 paying 4.15% going straight to the very top, a 120 Day Notice Account Issue 20 paying 4.11% and a 90 Day Notice Account paying 4.01% - both of which are also the market leading accounts for those notice periods.
The top five notice accounts are now all paying 4% or more..
If you're not quite ready to tie up your cash but you'd like to earn a little more interest, a notice account might be the saviour.
Just as I think rates can’t get much higher, they do!
The big news was the introduction of a 5% bond from Isbank – via the Raisin UK platform - across all the terms, 1-year to 7-years! This is the highest rate seen for over a decade in the 1-year table and as we expected it was soon withdrawn, not just for the 1-year term, but across all terms.
But there has been plenty of competitive activity, nevertheless.
In the 1-year table, whilst the Isbank account was withdraw, there were a number of providers fighting for the top spot. once again.
At the same time that Isbank launched its 5% 1-year bond, the competition for 2nd place escalated. First, Close Brothers raised the rate it was offering to 4.85%, then 4.87% - and as we head into the weekend 4.91%. Oak North was another provider to defend its place, increasing the rate it was offering from 4.74%, to 4.86% and finally, as we end the week it was upped again, to pay 4.92% on its latest bond.
This seemed like the winning bond but Allica Bank threw a spanner into the works by launching a 1 year bond paying 5% AER right at the last minute.
We’ll have to wait and see what happens next week.
In our 2-year table, Allica Bank has been added, launching its 18 month banger, also paying 5%
The accounts in the remaining spots of the table are all paying 4.96% or marginally less 4.95%, although not all of these accounts require the funds to be tied up for 2-years.
OakNorth Bank currently has a 15 month bond paying 4.96%, and a 24 Month Fixed Term Savings Account paying 4.95% AER.
And with Hodge Bank increasing the rate on its 2-year bond to 4.95%, the average of the top rates in the 2-year table is now 4.96% - up from just 4.77% a couple of weeks ago.
Smart Save has been conspicuously absent from the top rates in our 3-year table for the last couple of weeks, pushed out by some fierce competition.
As mentioned earlier, Isbank, via the Raisin UK cash platform, launched a 3-year bond paying 5% last week, although this has subsequently been replaced by a lower paying rate of 4.95%, matching the bond from DF Capital.
Over in the 5-year table, as well as the Isbank bond paying 5% which is no longer available, United Trust Bank upped the rate it’s paying on its 5-year bond to 4.90% which moves it into 2nd place as the new issue of the Isbank bond via Raisin UK is still slightly higher at 4.95% AER.
Not much more to report Once again, these rates are higher than they were a couple of weeks ago, but lower than many of the top rates available over the shorter terms.
Take a look at our latest article Fixed term bonds rates rocket upwards – is now the time to fix?
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