Wow – it’s been quiet over the last couple of weeks, across the board. – the most inactive I can remember for a while. Presumably providers have been waiting for the base rate decision this week (31st July 2024).
But now the base rate has been cut, how long will this stability last? We’ve already seen some rate cuts and withdrawals, but we expect to see more going forward.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (02/08/2024). All up to date rates can be found on our Best Buy tables.
It had been a really slow week for easy access best buy rates, with just two things of note happening before Friday – and both from the same provider.
Last week Oxbury Bank launched a new easy access account called Easy Access Account Special Edition 1, not to be confused with the Easy Access Account Limited Edition 1. The only difference between the two is the rate and the minimum. The minimum of the new account is a little higher than the other - £25,000 rather than £20,000, and therefore the rate is a tiny bit higher, 5.04% AER rather than 5.02% AER.
But both of these account, as well as the other easy access account from Oxbury, were all withdrawn from sale on the day the base rate was cut.
And then on Friday, it all kicked off - firstly, Flagstone dropped the rate on it's Instant Access Saver via SmartSave from 5.07% AER to 4.70% AER, taking it out of the top five, before Monument then withdraw its Easy Access Saver that had been paying 5.03% AER, leaving both 2nd and 3rd place vacant on the Best Buy tables.
As a result, Principality Building Society's Online Bonus Triple Access Issue 2 was bunked up to 2nd place, paying 5.00% AER, and Monument re-entered the tables but via the account available on the Raisin platform, paying 4.91% AER. This is followed by restricted access (both double access) offerings from Paragon and Aldermore rounding out the new top five - with the top rate still the Ulster Bank Loyalty Saver, paying 5.20%
We’ll have to see what happens next, but expect more cuts on the way...
The lack of activity has continued into the fixed rate bond markets too - but as with Easy Access, a flurry of activity has impacted some of the tables in the last 24 hours, especially on 1-year terms.
1 Year
There had been just one change to the 1-year table over the last couple of weeks and that was a new bond via the Raisin UK platform – a bond with GB Bank paying 5.26% AER.
That however was withdrawn on Friday, alongside the bond that had been in top spot, Union Bank of India's 1 Year Fixed Rate Deposit paying 5.40% AER, which has been reduced to 5.25%, rivalling the 12-month fixed term offered via the Flagstone platform, provided by Mizrahi Tefahot Bank, and Access Bank's Sensible Savings 1-year Bond.
With Ziraat Bank's 5.25% AER bond via Raisin also being decreased, 4th position was filled by Progressive Building Society's Online 1-Year Fixed Rate Bond Issue 4 at 5.20% AER and then a shorter term, 6-month offering by Beehive Money in 5th place at 5.18% AER.
2 Years
Friday again saw some changes to the 2-year table, with United Trust Bank's 15 month bond decreasing from 5.05% AER to 4.95% AER - demoting it from 2nd to 4th position. GB Banks 24-Month Fixed Term Deposit via the Raisin platform was also decreased, opening up a space on the tables, which was taken by Hampshire Trust Banks 2-Year Bond Issue 90, paying 4.95% AER.
3 Years
There’d not been much to say about the top 3-year bonds. Two withdrawals and one addition pretty much sums it up - again until Friday! The first to be withdrawn was the 2nd place bond with Close Brothers paying 4.80%, which saw Shawbrook slot into the bottom slot with a bond paying 4.73% which was launched in early June!
But a new bond from Hodge Bank paying 4.75% pushed Shawbrook out of the table for a few days, because when Cynergy Bank withdrew its bond paying 4.75% on the base of the base rate cut, Shawbrook was ready to jump back into the table once again.
Friday saw some further jostling - GB Banks 3-Year via Raisin was also decreased, as was Hodge Bank's offering, although less so than GB Bank - going from 4.75% AER to 4.72% AER, actually keeping it in 4th position (as it was leap-frogged by Shawbrook's 4.73% bond). As with the 2-year tables, Hampshire Trust Bank bagged final position, with their 3-Year Bond Issue 66 paying 4.70% AER.
The top rate remains at 4.81% with Access Bank – but how long will this last?
5 Years
In the 5-year table, we’d got a new and slightly better paying leader! Result!!
GB Bank via the Raisin UK platform launched a bond a couple of weeks ago paying 4.58% AER, taking it straight to the top - of course, it has now been withdrawn alongside the other GB Bank Raisin offerings.
There was another increase too which makes the 5-year table the most exciting of the lot recently! Hodge Bank launched a mid-table bond paying 4.56% and this temporarily pushed United Trust out of the top five!
However, a couple of days later, Shawbrook Bank withdrew its bond paying 4.57% so United Trust Bank made its way back into 5th place still paying 4.50% AER.
Friday then saw further changes, with Hodge Bank decreasing to 4.49% putting it in 5th place and Close Brothers returning to the table with 4.50%.
There’s been more activity in the fixed rate cash ISA tables – including some post-base rate changes!
1 Year
There had been two increases to mention before Friday, although both from the same provider. Shawbrook Bank is the provider in the limelight, initially launching Issue 101 of its 1-year ISA paying 4.94%, putting it into joint third place. However, clearly this was not attracting the funds required, so Shawbrook upped its offering by launching Issue 102 paying 4.96% - not a lot more but slotting it into 2nd place behind the Virgin Money ISA that requires you to open a current account with them.
Friday then saw an unfortunate round of withdrawals and decreases, with UBL, Castle Trust and Cynergy Bank all decreasing their 1-year offerings, pushing Close Brothers up to third place with 4.92% AER, Kent Reliance in fourth with 4.91% AER and Castle Trust, with their new decreased rate of 4.90% AER in fifth spot.
2 Years
There’s some cause to celebrate in the 2-year table, with two new accounts inhabiting first and second spot, in a rare round of rate increases following the base rate decision
In top spot, Beehive Money released Issue 4 of its two year fixed ISA, paying 4.73% AER, followed by a first issuance of a 2-Year Fixed Rate Cash ISA from Harpenden Building Society, paying 4.72% AER. This pushed former leader United Bank into 3rd place, paying 4.71% AER. Could 2-Year ISAs be the next key battleground?
3 Years
Over in the 3-Year table, it has been steady for two weeks, but Cynergy withdraw their 4.55% account on Friday, promoting both United Trust and Close Brothers offerings, paying the same rate but for higher minimum amounts, up the listings. Then, both UBL and Beehive Money came flying into the tables, offering improved rates on their 3-year offerings, at 4.51% and 4.50% AER respectively - showing further positivity in the longer term fixed rate ISA market.
5 Years
As with 2 and 3 Year ISAs, the 5-Year saw the release of some higher rates on Friday, boosting the average rate of the table and showing that longer term rates might be stating to pick up against their shorter term counterparts.
The top rate from UBL UK paying 4.26% is holding fast - and United Trust Bank made a positive move this week – withdrawing its bond paying 4.20% but replacing it with another paying 4.25% - moving it from mid table to joint second place with Beehive, which had withdrawn Issue 4 but replaced it with Issue 5, paying the same rate.
Castle Trust also withdraw its 4.10% AER offering, only to replace it with a higher rate of 4.20% AER, switching its position with Close Brothers, who round out the top 5 with 4.17%.
What a difference a couple of weeks makes – from overall good news, to a flat market, to both positive and negative changes following the base rate decrease. Unfortunately I am expecting the next few weeks to bring bad news as providers start to cut rates – but we’ll be here to report on everything that happens – and remind you of the best rates that are available.
We’ll be back with another update in two weeks. In the meantime, remember to keep an eye on the best buy tables.
@savingschampion
Find us on Facebook