As we wait for the next Monetary Policy Committee (MPC) meeting on 16th December, activity seems to have slowed a little.
Nevertheless, those who are vigilant can eke a little more interest out of their cash by shopping around.
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RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (10/12/2021). All up-to-date rates can be found on our Best Buy tables.
Unfortunately the top rate of 0.75% from Aldermore was withdrawn on Friday. And while the new best rate is slightly lower, the good news is that we’ve seen a couple of accounts increasing the rates for both new and existing customers.
Firstly, the Investec Online Flexi Saver. Investec, who was Highly Commended in our Savings Champion Award for Simple Savings for this very account, increased the rate from 0.58% to 0.71% putting it into the top spot on our Best Buy table. And as the award it won suggests, this has no restrictions on the number of withdrawals that are allowed each year, so could be a good option for those who need regular access to their cash.
The other account to increase the rate for both new and existing customers is via the Raisin UK platform. The Private Bank Brown Shipley increased the rate on its Easy Access account from 0.45% to 0.61% AER. And while that doesn’t get it onto our Best Buy table as it stands, if you add the £50 welcome bonus, which is available for new customers to Raisin UK, it could mean earning up to 1.11% for the first year. Here’s how;
The Raisin bonus is paid to new customers to the Raisin UK website who open and fund a savings account with at least £10,000.
If you are new to the platform and deposit £10,000 into the Brown Shipley Easy Access Account you could apply for the welcome bonus of £50. Therefore, if you add the £50 bonus to the gross interest of 0.61% you would earn on your £10,000, in total you could take home £111, which equates to 1.11%.
A couple of things to note; the bonus must be applied for, it is not automatically given. Also, as the bonus is fixed, the more that is deposited into your first account, the more diluted the benefit. For example, if you were to deposit £50,000 into the Easy Access account, you would earn £305 – if you add the bonus of £50, this would equate to 0.71%.
But, if you’re new to Raisin it could be something to consider.
While once again the best rate of 1.10% AER paid by Secure Trust Bank has not been beaten, Oxbury Bank has launched the latest issue of its Personal 120 Day Notice Account - Issue 3 is paying 1.10% AER too.
Oxbury Bank has also launched a new 95 Day notice account (Issue 8) paying 1.05% so the provider is paying the best rate on three and four month notice accounts.
There’s been a little bit of good news and a little bit of bad news in the Fixed Rate Bond market.
Over 1-year the best rate briefly got back to 1.40% as Smart Save launched its latest bond – however, it was available for just a couple of days so the best rate is now a smidge under at 1.39% AER with Masthaven - but that’s still higher than it was a couple of weeks ago.
Over 2-years, the best rate has improved slightly too as Smart Save has not withdrawn its market-leading bond paying 1.64% AER. Unfortunately United Trust Bank did withdrawn its second place account which was paying 1.63% so Secure Trust Bank has taken this spot paying 1.60% AER.
You win some, you lose some!
Over the other terms, the top rate has fallen slightly over the course of the last couple of weeks. Perhaps it’s all on pause until the base rate decision on Thursday but it means that the best 3-year bond is with UBL, either directly or via Raisin (so remember that bonus might apply) paying 1.82% and over 5-years it’s now Hodge in the top spot with a bond paying 2.08% AER.
The fire has definitely gone out of the Fixed Rate ISA market I’m afraid.
While last week there were some new ISAs added to the Best Buy tables, this week has seen many withdrawn again.
Over 1-year, Castle Trust withdrew its market leading ISA paying 0.96%, leaving Shawbrook Bank in the top spot paying 0.93%.
However, over 2-years Castle Trust is currently in the top spot paying 1.17% after Secure Trust Bank decided it has raised enough and closed its ISA paying 1.20%.
Over 3-years Secure Trust Bank is now the sole leader of this term after United Trust Bank closed its joint market-leading bond paying 1.35% and launched a new lower paying issue paying 1.25%
Finally, over five years, things are looking a bit brighter. United Trust Bank and Secure Trust Bank both launched 5-year Fixed Rate ISAs paying 1.70% AER and although United Trust Bank has subsequently withdrawn its ISA already, Secure Trust Bank is still standing alone in the top spot. This is the highest rate since March last year, just before the Bank of England cut the base rate to 0.10%!
So it’s not been all bad news!
There have been no changes at all in the Variable Rate ISA Best Buy table over the last few weeks so the top rate of 0.67% has been the best on offer since the beginning of November. We can only hope that competition will be sparked in the New Year as we approach the ISA season.
That’s it for this week – I hope to bring you a bit more in the way of good news next time as it’s a shame that things have slowed recently. In the meantime, keep an eye on our best buy tables.
*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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