Have rates dropped so low that things can’t get any worse? There has been has been a bit going on over the last couple of weeks but not all of it bad, indicating that perhaps this is as bad as it gets?
There are still a few positive green shoots in the mix, mainly in the short term fixed rate markets – but hopes are fading that there will be much more action in the ISA market, as the deadline for opening a cash ISA in the current tax year approaches.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (05/03/2021). All up-to-date rates can be found on our Best Buy tables.
It depends on how you look at it. One the one hand, it is really disappointing that the reintroduction on the Marcus by Goldman Sachs Online Savings Account hasn’t ignited any serious competition, but on the other hand, at least the best buy easy access rates have remained fairly steady over the last few weeks.
That said, Nationwide withdrew Issue its 1 Year Triple Access Online Saver 10 which was paying the joint market leading rate of 0.50% and has launched issue 11 which is paying a lower rate of 0.40% AER.
But the introduction of a new Online Easy Access account from Cynergy Bank paying 0.50% means that there are still three easy access accounts paying the market-leading rate of 0.50% AER – and now two of them allow unlimited penalty free withdrawals.
One thing to note about the new Cynergy Bank Online Easy Access Account (Issue 35) is that the rate includes a bonus of 0.20%, fixed for 12 months - so assuming the underlying rate remains the same, after 12 months the rate will fall to 0.30% AER.
This is where the action is – and it’s not all been bad for a change.
In the 1-year table, we did lose the market leader, PCF Bank, earlier this week which was sitting at the top on the table paying 0.58% AER - but OakNorth Bank stepped into the breach by upping its offering by the smallest of margins and as we speak it is in the top spot – also paying 0.58% AER. ZOPA has also returned to the table - into second place paying 0.56%.
In the 2-year table, in a similar move, Cynergy Bank upped its offering, and claimed the top spot, paying 0.75% AER – which replaced Oxbury Bank who launched a new, lower paying 2-year bond this week paying 0.70% AER. But this has been pipped by ZOPA which has returned here too - and goes into second place paying 0.71% AER.
Cynergy and ZOPA have both reappeared in the 3-year tables as well this week, whilst Oxbury Bank has exited the top five after launching a new lower paying issue of its 3-year bond. Cynergy matched the then current market leader, Oxbury Bank, paying 0.90% AER and ZOPA, whilst not quite market-leading, is just 0.01% behind the leader, offering 0.89% AER.
There has been absolutely no activity in the 5-year bond table over the last couple of weeks, however Hodge Bank has announced that it will be launching a new market-leading 5-year Fixed Term Deposit Account on Monday 8th March paying 1.30% AER.
Gatehouse Bank is still paying the best rate on the market with its 5 Year Fixed Term Green Saver, but unfortunately the new issue launched last week is slightly lower at 1.40% AER – and its current 3 Year Fixed Term Green Saver is paying 1.10% AER.
QIB (UK) Limited is still offering the best 1 year paying 0.65% AER, the best 18 month paying 0.75% AER and the best 2 year term paying 0.85% AER, via the Raisin UK Platform*.
Cash ISAs
There has been a little bit of activity in the ISA tables, but not a lot and nothing very exciting.
Tipton & Coseley Building Society joined the leaders in the 1-year Fixed Rate ISA table by launching a new ISA paying 0.50% AER. Unfortunately however, we lost the Cynergy Bank ISA which was also paying that rate, which leaves just three ISAs still paying 0.50% AER.
Tipton & Coseley also launched a new 2-year cash ISA this week which when into joint 3rd place and means that the top five are all now paying 0.60% AER or above once again. Not a huge thing to celebrate, but we’ll take anything at the moment.
All we can suggest is that you still shop around for the best you can find. If you do pay tax on some or all of your savings, then at least the best cash ISAs are paying more that the net interest you could earn on a taxable savings account.
Take a look at the best Variable Cash ISAs here
Take a look at the best Fixed Rate Cash ISAs here
We'll be back next time - let's see what the next couple of weeks bring us.
*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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