Although inflation has remained at the 2% target for another month, the savings market is still on hold somewhat,
continuing to wait and see what the Bank of England will do next. As inflation has once again remained more
problematic than hoped in a number of areas, the markets are expecting the base
rate to remain at 5.25% at the next meeting of the Monetary Policy Committee
(MPC) on 1st August.
This continued respite for savers has therefore seen the top rates on offer remain steady and in fact some of the best buy accounts have even increased.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (19/07/2024). All up to date rates can be found on our Best Buy tables.
It’s not surprising that the easy access best buy table has been slow but steady over the last few weeks and months. But the good news is that there have been some positive moves, although the top rate and the average of the top five remain at 5.20% and 5.08% respectively.
The first key move of note came from a new issue of the Principality Online Bonus Triple Access Issue 2 paying 5% AER. As the name suggests though, this is a restricted access account – only three withdrawals can be made each calendar year – and closing the account counts as one of them! That means that if you have already made three withdrawals, you will be unable to close the account and have access to your money until the following calendar year, so plan carefully. The 5% interest rate also includes a bonus of 1.40% that will apply for the first 12 months.
Monument was the other bank to make a move. It increased the rate on its Easy Access Savings account to 5.03% AER – popping it into mid table position. This is an unrestricted account, so you can make as many withdrawals as you like, however the minimum deposit is £25,000 and Monument is an app-only provider.
1 Year
It’s been a mixed bag over the last month in the 1-year table but it’s good to see that as well as a number of withdrawals, there have been some increases and we’ve had a number of providers jostling for the top spot.
A month ago, the top rate was 5.21% AER – offered by Vanquis and the average of the top five was 5.18%. But within a couple of weeks Vanquis had been pushed out by several new bonds. First, a bond from Ziraat Bank via the Raisin platform matched Vanquis paying 5.21% but Cynergy and SmartSave both made bolder moves, offering 5.23% and 5.24% respectively.
Another bond on the Raisin platform, this time via the Mizrahi Tefahot bank was the next to move – pushing its way to the top with a bond paying 5.25% AER. And Union Bank of India made its way back into the table into 5th place with a bond paying 5.22%.
Raisin was not finished there though and launched yet another bond with yet another provider, this time Fidbank UK, paying 5.24% taking joint 2nd place with SmartSave – although the former was withdrawn just a couple of days later. There followed a flurry of withdrawals, leaving the table a little flat for a while – before being reinvigorated once again by the Ziraat Bank upping its offering via Raisin to 5.25%, matching the rate offered by Mizrahi Tefahot, this time via not only Raisin, but also the Flagstone platform. The Access Bank also launched its latest Sensible Savings 1-year bond, matching the others paying 5.25%.
But, as we end the week, we have a new leader – Union Bank of India is back in the top spot paying 5.40% AER.
2 Years
It’s been a bit quieter in the 2-year table and in fact the average of the top five has fallen slightly from 5.04% to 5.02% - although the top rate is still 5.06%, but with a different bank.
The first mover was Raisin with a bond from Fidbank UK paying 5.05%, slotting into 3rd place matching Sensible Savings but behind Vanquis and SmartSave, both paying 5.06%.
But SmartSave and Fidbank via Raisin both dipped out just a couple of days later.
On the plus side, Close Brothers was ready to step into SmartSave’s place with its latest 2-year offering paying 5.06%, so joining Vanquis at the top. Cynergy was the next to get in on the action, making it a three-way tie at the top.
But Secure Trust Bank decided to topple the trio upping the rate on its bond to 5.07%. Secure Trust Bank is unusual in the market as they often up the rate on their bonds, rather than launching new accounts, so existing customers also benefit from the increase! This bond was only available for a further week however, before being withdrawn. Cynergy too had already bowed out – so this left Close Brothers on its own at the top with new issues from Sensible Savings and Birmingham Bank sitting just 0.01% behind, both with bonds paying 5.05% AER. But Sensible Savings decided it wanted some of the glory so increased its offering to 5.06% too – and Hampshire Trust Bank slotted into the gap with a bond paying 5.05%.
Sadly, this was the end of the competition as we next saw Birmingham Bank, Hampshire Trust and Close Brothers closing their bonds. So as we end the week, the top 1-year is still Sensible Savings paying 5.06% - but the next best is RCI Bank and GB Bank via Raisin, both paying 5% AER.
There are also a couple of 15-month bonds in our table from United Trust Bank and Cynergy Bank, paying 5.05% and 5% respectively.
Could it be that the party is over?
3 Year Bonds
Things have been much slower in the 3-year table, but there have still been some interesting positive moves, as well as many withdrawals.
The first move of note was from Market Harborough Building Society which leapt to the top of the table with a bond paying 4.95%, smashing the competition out of the water. The next best rate at the time was a three-way tie between Sensible Savings, Close Brothers and Vanquis – all paying 4.80% AER.
Hodge Bank made the trio into a quartet before United Trust Bank moved slightly ahead paying 4.81% before being joined by Cynergy and then Birmingham Bank and Hodge. Secure Trust Bank was the next to make a positive move, edging ahead of the new 4.81% quartet but still behind the Market Harborough, with a bond paying 4.82%. Once again this was now the end of the party as another flurry of withdrawals, including the Market Harborough bond has left Sensible Savings at the top paying 4.81% - late to the party but the last man standing.
5 Year Bonds
In the 5-year table, we’ve lost a leader, but the average of the top five has only reduced by a small margin, from 4.58% to 4.55%.
A month ago, the top rate was 4.60% from Atom Bank – and as luck would have it, although Atom withdrew its bond after being available for just over a week, United Trust Bank moved in to fill Atom’s place with a bond paying the same. And there it stayed in the top spot for more than a good couple of weeks before being withdrawn. But luck was clearly shining on the 5-year table as Birmingham Bank moved in to not only take the place of United Trust Bank, but with a slightly better rate of 4.61% AER. Sadly, this account was withdrawn too after just a week, leaving Shawbrook, which had been mid table for quite some time with a bond paying 4.57%, at the top as we head into the weekend.
1 Year
Although the top ISA in this table is still the Virgin Money 1 Year Fixed Rate Cash ISA Exclusive Issue 12, paying 5.05% (but only available to current account holders) a number of increases further down the table have continued to push the average of the top five up - from 4.90% to 4.96% over the last month.
United Trust Bank made a couple of increases in just a couple of days, to 4.85% then again to 4.87%, joining Castle Trust Bank mid table. Close Brothers was the next to join the duo, but Cynergy was having none of it, launching an ISA paying 4.90% pushing ahead of Shawbrook Bank to take 3rd place. However, Castle Trust Bank had the same idea and actually went 0.01% further putting themselves into 2nd place – and offering the best ISA at the time for those who don’t also want to open a current account, paying 4.91%.
The good news is that it didn’t stop there! Shawbrook fought back launching an ISA paying 4.93% but Cynergy retaliated pipping Shawbrook by the smallest of margins with an ISA paying 4.94% AER.
Charter Savings Bank made a valiant effort to get noticed by matching Shawbrook paying 4.93% but the next contender took them both out. Secure Trust Bank upped its rate to 4.95% but this was only available for a week before being withdrawn.
In the meantime, Kent Reliance (Charter Savings Bank’s stable mate) had launched an ISA paying 4.94% so was left in 2nd place when Secure Trust Bank withdrew. Castle Trust decided to get involved again and although not challenging Virgin, matched Kent Reliance. And there they stay, with Virgin still at the top, Kent Reliance and Castle Trust in the next two places and Cynergy Bank and Shawbrook taking up the rear with ISAs paying 4.93%.
Great activity considering the market is generally on pause, pushing the top rates in the right direction.
2 Years
It’s positive news in the 2-year table too – including a new market-leader.
4.65% seemed to be the rate to beat with four out of our top five paying that rate a month ago. So, it was great to see United Trust Bank and Secure Trust Bank both doing that, launching 2-year ISAs paying 4.67% and 4.66% respectively.
Cynergy Bank was the next to get involved, matching Secure Trust Bank with an ISA paying 4.66%
Close Brothers was the next to make a move, matching United Trust Bank paying 4.67%, so Cynergy Bank decided to push ahead of both, upping its offer to 4.68% AER.
Secure Trust increased its rate again to 4.67% and then to 4.69% when Beehive Money took the table by storm by pipping everyone with an ISA paying 4.70%.
Unfortunately, Secure Trust Bank and Close Brothers have now both withdrawn their ISAs paying 4.69% but as we head into the weekend, Beehive Money is still there! Remember Beehive Money is a brand name for the Nottingham Building Society, so all funds deposited with either brand need to be added together for FSCS protection purposes.
3 Years
It’s brilliant to see the competition continuing to drive the top rates up – and that has been the case in the 3-year table too. It’s a lot of the same providers doing the hard work, but we appreciate it!
A month ago, just one ISA was paying 4.50% at the top of our 3-year fixed rate ISA table (Principality Building Society) but within a few days United Trust Bank, Close Brothers and Cynergy Bank had all matched the Principality.
But United Trust Bank then went a little better, increasing its rate to 4.55% and securing the top spot for a little while. However, Principality was not to be shrugged off, so leapfrogged United Trust Bank with a market-leading ISA paying 4.60% and Cynergy Bank upped its offering too, to 4.56%, although it was withdrawn a week later.
I’m afraid there is no more good news to report – Principality withdrew its ISA towards the end of the week, leaving Cynergy, Close Brothers and United Trust Bank at the top. But this is still higher than a month ago which is very positive considering we have not seen a base rate hike for almost a year.
5 Years
It’s a full house for good news as there are new leaders, paying higher rates in the 5-year table.
Principality was again the provider to beat, paying the market leading rate of 4.17% a month ago. The building society was initially joined by United Trust Bank and Close Brothers, paying the same rate but the United Trust Bank took a bold move to increase its rate to 4.20% - taking the top spot. However, Principality was clearly annoyed so retaliated by launching an ISA paying 4.25% - soon to be joined by Beehive Money. Unfortunately, Principality has now bowed out, but there was one more bit of good news to come - just as we thought that was it, United Bank Limited (UBL) launched an ISA paying 4.26% pipping all the rest!
And let’s not forget that as we head into the weekend, there are three new accounts paying more than what was available a month ago.
Overall it’s been a pretty good few of weeks, presumable helped by the fact that it feels like the markets are no longer expecting the base rate to be cut at the next Monetary Policy Committee (MPC) meeting on 1st August 2024.
We’ll be back with another update in two weeks. In the meantime, remember to keep an eye on the best buy tables.
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