It's been a month now since the Bank of England raised the Base Rate from 0.10% to 0.25%, yet still there has been little in the way of rate increases for existing customers - or new savers. It's very disappointing not to be able to give you some really good news, especially with inflation continuing to increase, but here is a rundown of what has happened so far.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (21/01/2022). All up-to-date rates can be found on our Best Buy tables.
There was some short lived excitement for easy access savers this week when the Family Building Society launched a new issue of its Premium Saver Account - Issue 5 - offering 0.72% AER. However, it was only available for a couple of days. For those who did manage to open this account, it is a bit quirky as you need to deposit any intended funds by 7th February 2022. After that date, even if you make a withdrawal, you can’t add to the account.
The other news this week was that Atom Bank has made a move with its Instant Saver Account, increasing the rate for all savers, new and existing, by 0.15% from 0.50% to 0.65% – not market-leading but not far off.
Shawbrook Bank remains at the top of this table paying 0.67% AER while Atom Bank goes into 2nd place, good news especially for existing customers.
There’s not been much to report this year except that the market leading 120-day notice accounts from Oxbury Bank and Secure Trust Bank paying 1.10% were withdrawn a couple of weeks ago, leaving Shawbrook Bank in the top spot paying 1.08% AER on its 120 Day Notice Personal Account Issue 50.
Meanwhile Allica Bank has increased the rate on its 95-Day Notice Personal Savings Account (Issue 1) this week for new and existing customers, from 0.86% to 1.05% AER, to make it the best paying three month notice account currently available.
It’s been very quiet over the last couple of weeks in the fixed rate bond market. There’s been no change to the top rate on offer over one year of 1.36% AER, although the provider has changed from Investec to Zopa.
The most action has been over the 2-year and 5-year terms. Over 2-years, firstly, Atom Bank launched a bond paying 1.60% to take the top spot from Zenith, but this was swiftly knocked off by Charter Savings Bank earlier this week with a new bond paying 1.62% AER.
Over 5-years there wasn’t a lot to report until JN Bank launched a new bond paying 2.12% earlier this week, the highest rate we’ve seen for two years - although few people are likely to be interested in tying their money up for such a long time when there could be further rate rises to come.
There’s been a bit more activity in the fixed rate ISA market, with the best rates available creeping higher over all terms compared to two weeks ago, albeit by the smallest of margins in the main – just 0.01% in most cases.
The 2-year term has seen the biggest increase with the best rate on offer rising from 1.20% to 1.25% when UBL made the move to regain the top place from Aldermore. UBL has also gone back to the top over 3-years and 5-years.
The news has not been so good in the Variable Rate ISA tables.
The big news last time was that Scottish Building increased the rate for new and existing customers on the Cash ISA and E-ISA from 0.55% to 0.70% which took them to the top of the table. But they must have attracted too much business as the account was withdrawn from sale just a couple of days later, leaving Shawbrook Bank in the top spot with its Easy Access Cash ISA Issue 18 paying 0.67%. However, that wasn’t to remain for long either as Shawbrook launched a new issue of that account a couple of days later offering 0.61% AER – even with this reduced rate Shawbrook Bank remains at the top of Variable Rate ISA Best Buy table.
We can only hope that there’s more to come as we approach the ISA season.
That’s it for this week – it’s a shame that things haven't really improved, so fingers crossed that things will get better. In the meantime, keep an eye on our best buy tables.
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