Whilst higher inflation is bad news, it does mean that the Bank of England has increased the base rate again – to 4.25% and this means that we can expect to see yet more savings rate hikes. But we could be getting close to the top now.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (31/03/2023). All up-to-date rates can be found on our Best Buy tables.
It’s been a little quieter over the last couple of weeks, but there was a flurry of activity in the last few days. However, the top rate is still 3.40% AER with Chip, for those happy to open an account via an app.
While no-one has challenged Chip for the top spot, there were still a number of other providers increasing rates, which means that the average of the top five is now 3.31% AER.
Coventry Building Society was the first mover, increasing the rate on its Limited Access Saver (Online) (8) from 3.10% to 3.25% and as we ended the week the rate was increased again to 3.30% taking joint 2nd place.
The Family Building Society re-launched its Online Saver (5) paying a higher rate of 3.26% and Shawbrook launched Issue 34 of its Easy Access Account also paying 3.26%
But as we ended the week, Shawbrook was knocked off the table by Secure Trust Bank and Al Rayan. Secure Trust Bank launched a new issue of its Access Account (Issue 7) paying 3.30% and Al Rayan increased the rate on its Everyday Saver (Issue 3) from 3.22% to 3.30%.
Although there has been a little less activity in the Notice Account best buy table, the top two accounts are now paying 4% - although they are both 180 Day Notice accounts with the Market Harborough Building Society and Allica Bank.
Cynergy Bank also launched a couple of new notice accounts, now the top paying 120 Day Notice Account paying 3.65% and top 95 Day Notice Account paying 3.60%
And Investec is still paying the top rate on a 90 Day Notice Account of 3.55% AER
It’s been another good couple of weeks in the fixed rate bond tables – over the shorter term in particular.
In the 1-year table once again the good news is that in the last two weeks, the top rate on offer has increased from 4.34% to 4.51% - in fact all of the top 5 rates are paying 4.45% or more.
Of course it was Smart Save that pipped the competition at the last moment with it’s latest bond paying 4.51% AER – this is the highest rate for a 1-year bond that we’ve seen since October last year, following the mini budget!
In the 2-year table once again Smart Save has snatched the top spot paying 4.54% at the last minute this week. Hampshire Trust Bank and United Trust Bank also increased their offerings to 4.53% and 4.51% respectively.
It’s been a little quieter in the 3-year table and the top rate available is now 4.55% with United Trust Bank, Cynergy and Close Brothers. But this is up from the top rate of 4.51% a couple of weeks ago.
Finally, in the 5-year table, United Trust Bank is again making waves, launching the top account paying 4.65% as we ended the week.
Considering we are in the peak of the ISA season, it's continued to be disappointingly quiet over the last couple of weeks although top rates on 1-year and 2-year ISAs have increased over that time.
Over 1-year, Virgin Money has been knocked off the top spot by high street bank Santander with its 1 Year Fixed Rate ISA paying 4.15%. It’s good to see a high street bank back at the top of the tables – let’s hope it’s not as difficult to open one of these accounts as it was with the Barclays ISAs that were previously topping the table.
Over 2-years Virgin has retained its place with Issue 561 of its 2 Year Fixed Rate Cash E-ISA, paying 4.26% AER. although Santander has an 18-month Fixed Rate ISA paying just 0.01% less. Strangely, Santander’s 2 Year Fixed Rate ISA is paying less – 4.20%, but it makes it onto the best buy table all the same.
The top rate of our 3-year Cash ISA table is still 4.20% although the provider is now Leeds Building Society rather than Close Brothers, which was withdrawn on Thursday.
Over 5-years, there has not been much to report in the last couple of weeks and in fact as we end the week, things are exactly the same as they were two weeks ago and the top rate is just 4.05% - less than the shorter term ISAs. There was a brief moment of excitement when Darlington Building Society launched a 5-year ISA paying 4.20% but that was available for just a week.
A number of cash ISAs will be unavailable as we switch from the current to the new tax year, but hopefully they will be back on or shortly after the 6th April. Remember to get your new ISA as soon as you can in the new tax year, so you can earn tax free interest for as long as possible.
This has been the quietest table over the last couple of weeks and the top rate is still the Furness Building Society 45 Day Notice Cash ISA paying 3.30%, retaining the top spot as we head into the weekend.
And Santander has made another appearance paying the top easy access ISA rate of 3.20% AER. Paragon increased the rate on its Triple Access ISA Issue 12, also to 3.20% AER – but as the name suggests you are limited to three withdrawals a year.
As we head into the new tax year hopefully there will be a little more competition in the ISA market. It’s definitely a good time to review your ISAs, old and new.
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