The recent base rate rises seem to be having some impact at last on the best buy saving accounts. This week we’ve seen the top rates on offer increase in many of the best buy tables – will this activity continue?
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (18/02/2022). All up-to-date rates can be found on our Best Buy tables.
Since last time, we’ve had some bad news and some good news, but the overall result is positive, with a flurry of activity towards the end of the week.
Aldermore’s Double Access Account Issue 1 paying 0.75% was withdrawn once more after just a few days. However, as it was withdrawn Ford Money increased the rate on its Flexible Saver account for new and existing customers to 0.73% AER – but once again this account was not available for long and after just a couple of days the best rate dropped back to 0.71% AER with accounts from Investec and Cynergy Bank.
But better news was to come – not only did RCI Bank increase the rate on its Freedom Saver account to 0.70% AER for new and existing customers, but Shawbrook Bank launched a new issue of its Easy Access account – Issue 29, paying 0.72% AER. But Atom Bank has stolen the show by increasing the rate on its Instant Saver account for new and existing customers, to 0.75% AER, taking the crown.
There is really only one bit of news regarding notice accounts. RCI Bank which recently launched its E-VOLVE 14-day notice account paying 0.55% has increased the rate for both new and existing customers to 0.70% AER. Although not easy access, the notice period is very short and therefore the E-VOLVE account could be of interest for different reasons.
All proceeds deposited into the RCI Bank E-Volve Saver will be used exclusively for financing RCI’s green transport ambition, which basically means the funds raised from this account will go directly towards the lending of electric vehicles, electric vehicle charging infrastructure as well as any future green mobility solutions under development.
The rate of this account is now much more competitive and with so few savings accounts on the market with a focus towards helping with environmental issues and even fewer that pay a competitive return, we recognise that in some instances it's not just about the rate. Therefore at a much more competitive rate, it really could be worth a look?
There has been plenty of activity over the last couple of weeks in the Fixed Rate Bond markets.
Over 1 year, while no one has challenged the very brief 1.60% account from Recognise Bank at the beginning of the month, there have been a number of increased bonds introduced and all of the top five are now paying 1.40% AER or more – with the top rate from Atom Bank and Tandem at 1.45% AER.
Over 2-years the picture is even better. The best rate from Smart Save launched at the end of the week, is 1.71% AER. Two weeks ago the best rate was just 1.62%.
The good news continues in the 3-year fixed rate bond table, albeit a little more muted. UBL UK and Bank of Ceylon via Raisin UK continued to lead the way paying 1.85% AER, until Ahli Bank, again through Raisin UK pipped them both with a new 3 Year Fixed Term Deposit paying 1.87% AER *. In addition to this top rate, those new to the Raisin Cash Platform could claim an addition £50 welcome bonus if they deposit at least £10,000, boosting their overall return.
Over 5-years, Monument Bank is still at the top paying 2.20% - the best rate since January 2020, so before the Pandemic, but there is a minimum deposit of £25,000. And with interest rates potentially on the rise, there won’t be many who want to tie their money up for this long.
Things have been a little quite recently, but Al Rayan Bank is back with a bang. Increasing rates almost across the board the Sharia compliant provider is now paying the best rates over 1, 2 and 3 years with expected profit rates of 1.50% AER, 1.72% AER and 1.92% AER respectively – beating all the equivalent fixed rate bonds.
Once again there’s been a little bit of activity in the Fixed Rate Cash ISA tables with the best rates on offer increasing over 1-year, 2-years and 3-years.
Shawbrook Bank is once again offering the best 1-year Fixed Rate Cash ISA paying 1.06% tax free/AER, after OakNorth, Aldermore and UBL knocked its previous issue paying 0.98% from its perch, with accounts all paying more than 1% AER. It’s the first time all five top 1-year cash ISAs have paid 1% or more since May 2020!
Over 2-years there were also some new accounts launched, meaning the top rates now available are being offered by UBL UK and Virgin Money, paying 1.36%. This is up from the best rate available a couple of weeks ago which was just 1.25%.
Similarly, over three years the best rate now available is 1.46% from Virgin Money, beating UBL into second place with its Fixed Rate ISA paying 1.41% tax free AER.
As we head into the ISA season, let's hope there will be more to come.
Shawbrook Bank has also been active in the variable rate cash ISA table and has launched Issue 20 of its Easy Access Cash ISA account paying 0.66% AER. Yorkshire Building Society has also made an appearance with its new Internet Saver ISA Plus Issue 10 which is paying 0.65% on balances of £10,000 to £49,999. On £50,000 it’s paying 0.70% AER but on balances of less than £10,000 the rate is 0.60% AER, so equivalent to a number of others.
That’s it for this week – it’s encouraging to see a bit more positive movement, so fingers crossed for even more good news next time. 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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