Even though there is a lot of chatter about the fact that rising inflation could force the Bank of England to raise interest rates, the relentless rise in savings rates seems to have abated somewhat.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (15/10/2021). All up-to-date rates can be found on our Best Buy tables.
After all the recent activity we reported last time, unfortunately things have quietened down considerably in the Easy Access table – although there is a new account that’s taken over the top spot.
Cynergy Bank has launched issue 42 of its Online Easy Access Account paying 0.66% AER. There are no restrictions on the number of withdrawals that are allowed, however the rate does include a 12 month bonus of 0.36% so you’ll probably want to move your cash at that point, if nothing better has come along in the meantime.
Unfortunately, the new 95 Day account from Recognise Bank paying 1.10% was not available for very long and it was withdrawn last week after just five days. This left the best rate of 1.06% from OakNorth Bank and Oxbury Bank on their 120-day notice accounts.
These are both still available and have been joined by a new 90 day notice account from The Family Building Society. In true Family Building Society style, this account is a little quirky. The account must be opened online and the minimum deposit is £20,000. But what is a little different is that you can only add further funds to the account up until 26/11/2021. After that date you can't add any more to your account. But it’s a good rate for an account that will allow you access after three months’ notice.
It’s a bit of a game of two halves in the Fixed Rate Bond tables this week, as on the whole the short term rates have fallen, whilst the longer term bonds have seen a sprinkling of competition.
The top one year rate is now just 1.33% with Investec, as there have been several withdrawals over the last few days in particular. At the beginning of the week the best rate was 1.40% and just a month ago the best rate was 1.50% AER.
Similarly over two years the best rate from Zopa is paying just 1.56% - whilst at the beginning of the week Allica Bank was offering 1.75% AER.
Over three years things are a little better – not only have there been fewer bonds withdrawn, but JN Bank in fact improved its offer and is now topping the table paying 1.81% AER. Raisin UK has a couple of banks in the best buy table too – including newcomer Hoist Finance, a Swedish provider. Remember that if you are new to Raisin, you could enhance your return with a welcome bonus of £50.
Finally, over five years, Recognise Bank is still offering a market leading 2% but has been joined by JN Bank. Both need to be opened online, both have a minimum of £1,000 and both are of course part of the Financial Services Compensation Scheme.
It’s been far more positive in the Fixed Rate ISA categories, over all terms.
Castle Trust Bank has retained its position in the 1-year table paying 0.90% AER although it has been joined by the West Brom Building Society paying the same rate. But the West Brom has pushed Castle Trust off the top of the 2-year table launching an ISA paying 1.15% AER and has also taken the top spot in the 3-year and 5-year tables paying 1.25% and 1.55% respectively. 1.55% is the highest rate we’ve seen since April 2020!.
Whether rising gilt yields and increasing speculation of a base rate rise around the corner will continue to push rates up, we shall have to see.
There’s been a reasonable amount of activity in the Variable Rate ISA table, culminating with the launch of the Cynergy Bank Online ISA (Issue 17) which, like in the Easy Access table, has gone straight into the top spot paying 0.65% AER.
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.
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