Another month and another base rate rise! Great news right? Well, the December rise has been pretty slow to filter through to existing variable rate accounts, but we’re hopeful that this recent news will start a fire under more providers, for existing and new customers.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (04/02/2022). All up-to-date rates can be found
on our Best Buy tables.
In my last Rates Rundown, the best easy access account available was the Shawbrook Bank Easy Access Account Issue 28 paying 0.67%, as Investec and Cynergy Bank had withdrawn their higher paying accounts paying 0.71% and 0.70% respectively, early in January and The Family Building Society’s Premium Saver (5) paying 0.72% was only available for a few days.
But there has been a reinvigoration recently as both Investec and Cynergy Bank reinstated their previously withdrawn accounts paying 0.71% and 0.70%, and then Cynergy Bank launched a new issue of its Online Easy Access Account – Issue 44 – matching Investec’s rate of 0.71%.
Just when we thought it was all over, on Friday, Aldermore reinstated its Double Access Account Issue 1 paying 0.75% AER*, that had been withdrawn from sale in early December last year. So, the average of the top five accounts in the table has improved from 0.63% to 0.70% AER.
The notice account market has continued to be muted and although the rates available are still higher than easy access accounts, the only change since last time has been the withdrawal of the top paying 95-day notice account from Allica Bank, which was offering 1.05% AER.
That still leaves Shawbrook Bank in the top spot paying 1.08% AER on its 120 Day Notice Personal Account Issue 50 and the best 95-day notice account is now with Charter Savings Bank paying 1.02% AER – so not too much of a reduction, but disappointing nevertheless.
The biggest excitement this week was the very brief showing from Recognise Bank, which introduced a head and shoulders market leading 1-year bond paying 1.60% AER. This was the highest we’ve seen for almost two years. But, as it was paying so much more than the next best rate from Tandem paying 1.39% AER which was also a new addition this week, it’s no surprise that it was very short lived, and being available for just one day means that you would have needed to act very quickly to benefit.
While disappointing that it wasn’t available for long, is this an indication that fixed rates are on the rise, as markets anticipate further base rate rises?
Tandem has also made an appearance in the 2-year and 3-year Fixed Rate Bond tables but not in the top spot. Charter Savings Bank is still paying the best 2-year rate of 1.62% while UBL UK and Bank of Ceylon via Raisin UK are paying 1.85% AER over 3-years.
Over 5-years, Monument Bank has made a bit of a splash by launching a new bond 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.
There’s been a little bit of activity in the Fixed Rate Cash ISA tables although the best rate on offer has only increased over 1-year.
Shawbrook Bank is now offering the best 1-year Fixed Rate Cash ISA paying 0.98% tax free/AER, knocking OakNorth into 2nd place
Over 2-years there was a late flurry of activity which has seen the average of the top five rise from 1.21% to 1.23%, although no-one has toppled UBL from the top spot. That said there are now three providers paying 1.25% so sitting in joint 1st place.
As we head into the ISA season, let's hope there will be more to come.
It’s been very quiet of late in the Variable rate ISA table with the only thing of note being Cynergy Bank launching a new issue of its Online ISA - Issue 18 is paying 0.60% AER so goes into joint 2nd place with Marcus by Goldman Sachs, and Leeds Building Society. Shawbrook Bank remains in the top spot, paying just a fraction more at 0.61% AER
That’s it for this week – it’s a shame that there’s not been more activity, but hopefully the latest base rate rise will see things hot up a bit. 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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