The latest inflation figures from the Office for National Statistics have confirmed that inflation is once again higher than forecast. This means that the financial markets are expecting one, if not two more base rate increases to be forthcoming. As a result, we’ve seen some really strong savings rate increases. The good news for savers is ongoing.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (28/04/2023). All up-to-date rates can be found on our Best Buy tables.
It’s been another good couple of weeks for the Easy Access best buy table and we have a new leader as we head into the weekend.
The activity started with Cynergy Bank launching a new issue of its Easy Access account paying 3.36% AER but this only put them into 5th place at the time.
Raisin UK was the next to make a move, adding a new easy access account with a relatively new provider – GB Bank. This new easy access account is paying 3.40% and at the time of launch it was in 3rd place on out table.
However, Aldermore increased the rate it is paying on its Double Access Account Issue 1 to 3.55%, for both new and existing customers. This account was launched back in November 2020 so it’s great to see that the winner of our Savings Champion Award for the Best Savings Provider for Existing Customers is continuing to offer exiting customers great value. At the time this increase was implemented, it was a joint market leading rate, with the app-ony Chip account which has been market leading for a few weeks.
However, as we end the week, Shawbrook Bank has swooped into the top spot with a new issue of its Easy Access account paying 3.65%, pushing Aldermore and Chip into 2nd place. Here’s hoping they retaliate!
We shouldn’t forget about the quiet but relentless rate rises in the Notice Account table that we’ve seen over the last couple of weeks either.
The top rate available is now 4.05% AER although this is a 180 Day Notice account (Issue 11) with Oxbury.
But OakNorth has launched a new 120 day Notice Account (Issue 31) paying 3.93% AER and for those who’d rather a shorter notice period, BLME is paying 3.85% AER on its 90-Day Notice Account.
If you're not quite ready to tie up your cash but you'd like to earn a little more interest, a notice account might be the saviosr.
It’s been a very busy couple of weeks in the fixed rate bond tables – over the shorter term in particular. However, across all terms, the top rates have improved.
The latest inflation rates have had an immediate impact on the top bond rates on offer. 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 4.55% to 4.82% - in fact all of the top 5 rates are now paying 4.74% or more. These are the highest rates we’ve known in the 11 years of Savings Champion.
As ever Smart Save has been active, launching four new higher paying bonds in the last two weeks and taking the top spot at the last minute on Friday with a bond paying 4.82%. In fact on Friday all five of the bonds that currently appear are new higher paying rates and the average of the top five is now 4.77% AER.
Smart Save and Oxbury played the leading parts for much of the last two weeks in the 2-year table, jostling for the top spot but as we ended the week, United Trust Bank got in on the act and matched Oxbury for joint lead, both paying 4.80% AER. Slightly lower than the top 1-year bond but a big improvement over the last couple of weeks.
Over in the 3-year table it’s Vanquis that has made the main moves, launching a bond paying 4.75% as we end the week, pushing Smart Save, United Trust Bank and Close Brothers down the list. 4.75% is a pretty good jump up from the top rate two weeks ago (Cynergy Bank and Close Brothers were offering 4.57%) but it is still lower than the top 1-year and 2-year rates, indicating that the financial markets are expecting the base rate to peak and fall again somewhat over the coming years.
Over in the 5-year table, United Trust Bank launched a new bond paying 4.71%, taking the lead from Tandem paying 4.70% AER as we end the week. Once again, these rates are higher than they were a couple of weeks ago, but lower than many of the top rates available over the shorter terms.
It’s important to give the Sharia Fixed Term accounts a bit of a shout-out this week, as Al Rayan is currently offering the market leading bond rate over 2-years - 4.85% Expected Profit Rate (EPR) and over 3-years - 4.90% EPR. These bonds are available either directly via Al Rayan, or via the Raisin cash platform and the minimum balance is £5,000.
When launched mid-week, they caused a bit of a stir and it’s possible that they were responsible for the extra surge of activity from the rest of the market as the week ended.
Long may it continue.
This flurry of activity could be short lived, so if you see a rate that you like, it might be worth actig as soon as possibly as this latest activity could end and quickly as it started.
@savingschampion
Find us on Facebook