Another Monetary Policy Committee (MPC) has taken place and once again the Bank of England base rate was kept at 5.25%. And although things have certainly slowed down, as the markets are still expecting the base rate to fall in the near future we have still seen some increases in our best buy tables, so there are still plenty of inflation beating accounts available.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (17/05/2024). All up to date rates can be found on our Best Buy tables.
There’s not been much action in the easy access table over the last couple of weeks – but what there was, was good and then disappointing.
First, there was a newcomer to the table – The Bank of London (not to be confused with BLME) had an easy access account paying 5.02% available exclusively via the Flagstone cash platform. It went into joint first place with Oxbury Bank which is still offering 5.02% AER on its Easy Access Account Limited Edition 1 account. That meant that all our top five were paying 5% or more once again.
But the next move shifted them both down a notch as Paragon launched Issue 7 of its Double Access account paying 5.05% AER – although it should be remembered that as the name suggests, only two penalty free withdrawals are allowed each year, so this account might not be right for everyone.
Unfortunately, this account was available for just a couple of days as was withdrawn towards the end of the week, leaving Oxbury and Flagstone at the top.
But the action wasn’t quite over yet – the Flagstone account was withdrawn too, drawing Kent Reliance’s Easy access savings account Issue 70 into the final spot on our table, paying 4.96% AER.
Up to 1 Year
It’s been pretty quiet in this table but what has occurred has not been positive for those looking to lock in some of their cash for six months. Having been dominating the table, there are no longer any six-month bonds left as the last standing, Zenith Bank, withdrew its then market leading bond paying 5.18% on Friday.
But there was good news to come, as we ended the week! In terms of the 1-year bonds available, things have been a little more stable, but everything changed at the end of the week. Habib Bank AG Zurich withdrew its 1-year offering of 5.18% - but bucking the trend, launched a new market leading account paying 5.21% AER.
2 Years
It’s been busier and more positive in the 2-year table and while two weeks ago there was just one bond paying at least 5% (5.05% with RCI), RCI has not only been joined by a couple of new members of the 5% club but has actually been pushed down into 2nd place by a new bond from DF Capital paying 5.07%.
The other was a 2-year bond with Sensible Savings from The Access Bank, which is paying 5% AER.
Birmingham Bank also launched a new bond paying 4.97%, gaining itself the 4th spot. But this activity means that the average of the top five is now 5.01% - up from 4.96% a couple of weeks ago.
3 Years
Last time I said that some activity was better than nothing and whilst this was true, it depends on the activity! Over the last couple of weeks, all we’ve seen in this table is the withdrawal of two bonds, but no new launches. But the leading account remains with Birmingham Bank paying 4.73% AER.
5 Years
I’m far happier to report and new top paying bond in our 5-year table, once again from Birmingham Bank – this time paying 4.58%.
And Raisin launched a new bond via GB Bank paying 4.55% which put it into 4th place, pushing the average of the top five up to 4.56% from 4.54%.
So, I’ll say it again, better than nothing!
We’ve not reviewed Sharia compliant fixed term bonds for a while as there has been very little activity. But there’s been some positive news recently. Al Rayan increased the rates on its one to three-year bonds and the 1-year bond increased to 5.20% meaning that Al Rayan was paying the highest fixed term bond rate currently on the market at that time. However, Habib Bank AG Zurich was a party pooper and pipped Al Rayan with a Sharia compliant 1-year bond paying 5.21% - matching its own non-Sharia account. Annoying for Al Rayan, great news for savers!
In the meantime, Gatehouse Bank’s 6-month bond paying 5.22% has been available for around a month and with the withdrawal of the 6-month bonds from the rest of the market, this is now the top paying bond for this term.
1-year
Whilst there has not been a great deal of activity over the last couple of weeks, and although the top is still the Virgin Money 1 Year Fixed Rate Cash ISA Exclusive Issue 12, paying 5.05% (but only available to current account holders) a few increases further down the table have pulled the average of the top five up from 4.78% to 4.79%.
United Trust Bank was the first to move – taking the bottom spot from Cynergy with a new ISA paying 4.71% - but a few days later they upped this rate a little more to 4.73% to take 2nd place.
OakNorth was the next to increase it’s offering this time from 4.72% to 4.73% to match United Trust Bank. And then at the end of the week, they were joined by Charter Savings Bank, launching a new ISA paying the same rate too.
2-year
The news isn’t so good in the 2-year table, although it looked good initially.
OakNorth increased the rate on it’s 2-year ISA from 4.62% to 4.63% - taking the top spot from Shawbrook Bank, who withdrew its ISA paying the same rate.
Aldermore made its way into the table with its latest offering paying 4.55% and Beehive Money did too with an ISA paying 4.60%.
But OakNorth felt it was paying too much as it reduced the rate it was offering to 4.61% - lower but still in the top spot.
3-year
Absolutely nothing has happened in the 3-year table over the last couple of weeks, so Shawbrook is still in pole position paying 4.41% - at least things haven’t fallen, I guess.
5-year
It’s been pretty quiet in the 5-year table too. The ISA season is clearly well and truly over.
That said, Beehive Money joined the table with a mid-table offering paying 4.05%and UBL increased it’s 5-year ISA from 4.06% to 4.07%, joining Shawbrook Bank at the top.
So not all doom and gloom!
That's it for this week. We’ll be back with another update in two weeks. In the meantime, remember to keep an eye on the best buy tables.
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