There has been little in the way of changes this week in the savings market, as providers seemed to pause activity in anticipation of yesterday’s Budget.
When put alongside the impending changes as a result of the base rate reduction earlier in the month - many of which are taking place from the 1 December – it is perhaps little surprise to see a lack of best buy activity from providers.
The only area where we have really seen activity is fixed rate cash ISAs, with a new entrant to the market and a new top 3 year rate.
All that said, savers will still be looking for the best possible deals, so this week’s rundown has ended up more a round-up of some of the best options on the market.
Read on for a summary of some of the top deals in a number of popular categories – but as ever, for an even greater range of options, take a look at our independent best buy tables.
Meanwhile, don’t forget to sign up to our Rate Alert emails if you haven’t done so already, to make sure you don’t miss out on any new accounts.
Fixed Rate Cash ISAs
There has been a new name in the fixed rate cash ISA market this week – OakNorth Bank, a provider that was previously only really known for its fixed term deposits. Its new 12 Month Fixed Rate Cash ISA pays 1.35% tax free/AER and sits just behind the top rates on the market for 1 year.
The provider also launched an easy access cash ISA paying a competitive 1.05% tax free/AER.
It’s great to see a new provider enter the cash ISA market, bringing with it more competition, which will hopefully keep pushing rates in the right direction.
Meanwhile, today saw the launch of a new market-leading 3 year fixed rate cash ISA from Leeds Building Society. Paying 1.85% tax free/AER, the account sits clear of the pack by a reasonable margin.
Easy Access Accounts
Currently top of the pile is Paragon Bank, paying 1.31% gross/AER on its Limited Edition Easy Access (Issue 4).
Next in line, by the smallest of margins, is the consistent best buy RCI Bank and also Birmingham Midshires (both 1.30% gross/AER).
This best buy table often sees changes, as it remains popular with providers and savers alike – after all everyone needs somewhere to put money for a rainy day – so keep an eye on our best buy table or call us on 0800 321 3581 for the latest options.
Fixed Rate Bonds
Currently cornering the market amongst shorter-term fixed rate bonds is Atom Bank, paying 1.95% gross/AER, 2.05% gross/AER and 2.25% gross/AER for 1, 2 and 3 years respectively.
Accounts from Atom Bank are applied for and managed via the provider’s mobile app only – so for those whom this is not suitable, our tables have a range of options for each term to choose from.
Meanwhile, for those looking for a longer term, Ikano Bank leads the 4 year and 5 year tables, paying 2.36% and 2.46% gross/AER respectively.
Each of our fixed rate bond best buy tables has a range of options to suit most people, so if you are looking for an alternative, take a look now or call us on 0800 321 3581.
Sharia Accounts
For those looking for an account with a fixed term, Sharia compliant accounts are an alternative to consider.
These are accounts that comply with Islamic law but are available to any saver, regardless of religion or culture. As Sharia law states that money itself had no intrinsic value, the payment and receipt of interest is forbidden. Instead, Sharia compliant accounts pay an 'Expected Profit Rate' as an alternative to interest, which is the level of profit paid by the provider to the saver.
Whilst the accounts are primarily designed for those people who would like to get a return on their savings without compromising their faith, they can be suitable for all savers. However, because of the different way that the return is calculated and the element of risk that sets these accounts apart from standard savings accounts, you should ensure that you are comfortable with this before proceeding.
Some of the rates on offer are higher than those offered on standard savings accounts – for example, BLME currently offers 2.00% gross/AER for 1 year, up to 2.50% gross/AER for 5 years. We have a best buy table that is dedicated solely to Sharia compliant accounts, with a selection of the top paying accounts at the current time, click here for more information.
For more information on any of the accounts above or for other options, call our Bath-based Savings Experts on 0800 011 9705. We’d love to hear from you.
@savingschampion
Find us on Facebook