Competition has definitely waned over last couple of weeks , although there have still been one or two shockers to keep things interesting.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (01/09/2023). All up-to-date rates can be found on our Best Buy tables.
Let’s start with the Easy Access table.
It’s been a lot quieter over the last couple of weeks and the top rate on offer has not increased over the 5% level that the Furness Building Society has been dominating.
But there have a been a couple of rate increases as well as withdrawals to report on and overall, the average of the top five is up slightly, from 4.89% to 4.90%.
Cahoot’s Simple Saver and Nottingham Building Society’s Beehive Bonus Saver August 2024 both increased the rates on offer on their easy access accounts to 4.90% boosting the top five average, and Chip then increased the rate on its previously market leading Instant Access Account to 4.84%, up from 4.51% AER.
Oxbury was the next to make a move, increasing the rate on its Personal Easy Access Account – Issue 1, to 4.85% AER.
But Shawbrook wanted the 2nd spot in the table, so increased the rate on its Easy Access Account Issue 36 to 4.93% AER. Oxbury retaliated, which is always good news for savers, by upping its offering to 4.94% but the account was then withdrawn from sale a couple of days later, leaving Shawbrook as the best account for unrestricted access – and Furness Building Society still at the top paying 5% on its Triple Access Saver (Issue 1) which as the name suggests allows just three penalty free withdrawals per year.
The good news is that as well as rates still increasing slightly overall, it is not simply new issues of accounts – the rates are increasing for existing customers in these accounts as well as new.
NEWSFLASH 4/9/23 - I simply had to add the news that Santander has launched a new Easy Access Saver Limited Edition (Issue 3) account paying a market leading rate of 5.20% AER. This is an extraordinary move but there are a couple of things to be aware of. Firstly, this variable rate account has a 12 month term, after which the cash will be moved to the Everyday Saver, which is paying just 1.05% at the moment. So it's vital to review your account at that time. Secondly it will be withdrawn from sale on 17th September - or earlier if it is fully subscribed - so you might want to move fast if you want to open it. For more details take a look on our Best Buy table.
1 Year
It’s been a quieter week in the 1-year table but there was a massive surprise addition towards the end of the week.
Very little has been happening over the last couple of weeks – there was even a point at which the 5th spot on the table dipped below 6%, when United Trust Bank withdrew its 6% bond, leaving Charter paying 5.98%. But a couple of new bonds from Close Brothers and National Bank of Egypt (UK) via Raisin, both paying 6% soon rectified that!
All was quiet then until out of the blue NS&I launched the latest issue of its Guaranteed Growth Bond paying 6.20% AER. It’s sister bond, the Guaranteed Income Bond is paying 6.03% monthly/6.20% AER taking both bonds right to the top of their best buy tables.
Smart Save was the first to retaliate, although it was a toothless 6.01% that they launched, then Habib Bank AG Zurich launched a bond paying 6.03% - taking the second place but not challenging NS&I.
I can’t image the NS&I bonds will remain available for too long, so get a move on if you want to take advantage.
2 Years
There’s been less to report in the 2-year table – in fact the top rate on offer has fallen from 6.10% with Recognise Bank which was withdrawn last week, to a plethora of banks offering 6.05%. This seems to be the ceiling that no one is prepared to break for the time being.
3 Years
It’s been a little worse in the 3-year table and the top rate on offer has fallen from 6.05% to 5.96%. So while a couple of weeks ago the top three bonds were paying 6% or more, all five are now paying less and the average has fallen from 5.99% to 5.95%. So not a huge drop, but another indication that the markets are expecting base rate to fall away somewhat in the coming years.
5 Years
Once again the top rate on offer has increased from 5.80% with RCI to 5.85% with Tandem. But on the flipside, the RCI Bond which was previously market-leading, was withdrawn and United Trust Bank reduced the rate it was offering from 5.80% to 5.75%. This means that overall the average of the top five has remained the same at 5.77%
All in all, pretty disappointing. But, even though the longer term bond rates are a little lower than the shorter term, don’t immediately dismiss the idea of locking some cash away for longer. If inflation does fall close to the 2% target in the near future, by locking in for three or perhaps even five years at the current rates of close to 6%, you could end up in the enviable position of earning interest that is greater than inflation for at least part of the term of the account.
1 Year
It’s been a lot quieter over the last couple of weeks, although the top rate on offer has increased marginally from 5.77% to 5.78% with a new ISA from Shawbrook Bank. Other than that, the only news to report was an increase from Kent Reliance from 5.70% to 5.72% AER.
2 Year
In the 2-year table the top rate has also increased to 5.78% but this time it’s Charter Savings Bank offering the goods. Once again there has been no other activity to report, so it definitely feels like things are peaking.
3 Year
In the 3-year ISA table the only thing to report is that United Trust Bank withdrew its second place ISA paying 5.55% reducing the average of the top five from 5.54% to 5.53%.
As we head into the weekend the top rate is still with Zopa, paying 5.56%
5 Year
Over five years, it’s been ever so quiet again and Zopa is still ruling the roost with its 5 year ISA paying 5.26%. And although United Trust Bank withdrew its 5-year ISA paying 5.25%, this was replaced by a new launch from Secure Trust Bank paying the same rate. So the average of the top 5 remains at 5.24% AER.
The Easy Access Cash ISA table has shown some good improvement over the last couple of weeks and the top rate on offer is now with Cynergy paying 4.55% AER.
Chorley Building Society and Paragon also increased rates to 4.50% AER, although both of these accounts allow very restricted access without penalty.
Whilst there has certainly been a slowdown in the competition driving rates upwards, there are still come great rates to be found, especially if you have cash languishing in a poor paying account. So, take a look at our best buy tables, and vote with your feet is you are not earning as much as you can.
@savingschampion
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