After a slow start there has been a sudden burst of competition pushing up rates in a number of the best buy tables. Will there be more to come? Let's hope so.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (04/03/2022). All up-to-date rates can be found on our Best Buy tables.
Best Buy Easy access rates are creeping back up and this week has seen some great jostling between Yorkshire Building Society, Cynergy Bank and Tandem with Cynergy taking the crown at the end of the week, launching Issue 46 of its Online Easy Access account paying 0.80% - the highest rate seen on our tables since November 2020.
This account does include a 0.50% bonus for 12 months, so you’d be wise to make a diary note to review in a years time if you open this account, if not before.
Tandem, on the other hand has increased the rate on its Instant Access Saver and this rewards both new and existing customers. The new rate is 0.77% AER and there is no bonus to consider. This account can be opened and managed via a mobile app only but it’s great to see existing customers being rewarded as well as new.
Yorkshire Building society is also paying 0.77% AER for savers with at least £10,000 – and for those with £50,000 or more, the rate increases to 0.82% AER – but if your balance falls below £10,000 the rate drops to 0.60%, so it’s important to keep an eye on how much you have in the account.
There has been a lot of activity in the short term fixed rate bond market, with one, two and three year battles in particular pushing rates upwards.
Over 1-year Tandem Bank has seen off the competition from Habib Bank AG Zurich, OakNorth Bank, Hampshire Trust Bank and Investec who have all occupied the top spot over the last couple of weeks, albeit for a short time in most cases.
But the Tandem Bond offering paying 1.55% AER for 12 months has seen the bank victorious for the time being. Let’s see what happens next.
The picture is similar over two years although even Tandem was taken out at the last minute by Smart Save. Two weeks ago the best rate over this term was 1.71% AER with Smart Save. But increasing rates from Aldermore and Tandem this week has seen Smart Save trump its rivals with a bond paying 1.81% AER – pipping Tandem by the smallest of margins. Let’s see if there’s any retaliation.
Over three years Smart Save has once again rained on Tandem’s parade by launching a market leading bond paying 1.91%, which pips Tandem as well as Secure Trust Bank and Close Brothers, who have all increased their rates for this term in last few days to 1.90% AER.
Paragon has been a last-minute disrupter in the short term fixed rate ISA world, topping the tables over one and two years and winning what has been a pretty fierce battle over the last couple of weeks.
Over 1-year the efforts of OakNorth, Hampshire Trust and Hodge Bank had seen the top rate rise from 1.06% to 1.10% - until Paragon blasted in with its current market-leading rate of 1.15% AER.
Over two years, again quite a bit of activity has increased the best rate on offer from 1.36% with UBL to 1.45% from Paragon – and in fact the top five 2-year fixed rate ISAs are now all paying 1,40% or above.
Over three years all of the top five ISAs are now paying 1.50%. Just two weeks ago the best rate was 1.46% AER and the lowest of the top five was just 1.40%. Hopefully as the end of the tax year approaches there will be more to report.
There has been less activity with the longer term ISAs however the best rate on offer is 0.10% higher than it was two weeks ago. United Trust Bank is now paying 1.86% AER kicking out the competition and paying the highest rate since February 2020.
It’s been a little quieter in this market place of late, however what has been really encouraging to see is that Yorkshire Building Society is offering the same rates on its Internet Saver ISA Plus Issue 10 and its Internet Saver Plus Issue 10 (non ISA account). Both are paying 0.77% on a balance of £10,000 with a higher rate of 0.82% on balances of £50,000 plus and 0.60% AER on balances of less than £10,000.
It's encouraging to see best buy rates continuing to improve - let's hope there is more to come. Keep a close eye on our Best Buy tables for up to the minute information.
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