As you’d expect, there has been a lot of activity in the tables over the last couple of weeks, further to the base rate cut.
Rates have fallen almost across the board, but it’s not been as bad as it might have been and there are still some nuggets available if you move quickly!
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (16/08/2024). All up to date rates can be found on our Best Buy tables.
It’s a shame to see that the average of the top five has dropped below 5%, but with just one account now matching base rate, never mid beating it, it was inevitable.
That said, considering there has been a base rate cut, things seem to have quietened down after an initial flurry immediately after the event.
But there have been a number of withdrawals and rate reductions in the table in the last couple of weeks. Monument (via the Raisin platform) and Aldermore with their accounts paying 4.91% AER were the first to leave the table which left the door open for Close Brothers and Kent Reliance to fill the slots, paying 4.90% and 4.85% respectively.
At the same time, we were made aware that the Ulster Bank Loyalty Saver seems to be available to customers in Northern Ireland only, so it too had to come out.
This left the Principality Building Society in the top spot with its Online Bonus Triple Access Issue 2 paying 5% AER.
However, Raisin launched a new easy access account via UBL paying 4.87% which pushed its way into the table, whilst Kent Reliance withdrew its recently promoted account.
But the Raisin/UBL account was withdrawn just a few days later, allowing another easy access account available exclusively via Raisin – the Hoist Easy Access Account paying 4.85% to take its place.
1 Year
Rate reductions began in earnest immediately after the base rate cut – and this has continued, albeit slowing down a little as we ended the week.
It started with a plethora of bond withdrawals – Isbank via Raisin withdrew their 1 year and 6-month bonds which were in the bottom two spots paying 5.17%, followed by MBNA which had been a brief replacement paying 5.15% AER.
But then there was some good news, with the launch of a couple of bonds from Mizrahi Tefahot via the Flagstone platform this time. The 6-month bond paying 5.26% went to the top of the table, whilst the 1-year paying 5.16% went into third place, behind Union Bank and Progressive Building Society paying 5.25% and 5.20% respectively.
But the Progressive Bond and the 1-year Mizrahi Tefahot bonds were withdrawn just a couple of days later, before the 1-year Mizrahi bond was reinstated via both Raisin and Flagstone.
Raisin UK have recently reinstated a welcome bonus for those who have not yet joined up to the platform. Those opening and funding an account with at least £10,000 for the first time with Raisin UK, will receive a £100 bonus payment which can elevate an already competitive rate into a market leading one.
If you were to deposit £10,000 into the 1-Year bond with the Mizrahi Tefahot Bank paying 5.16% AER*, the £100 bonus could push the effective rate earned up to 6.16% for the first year, the highest rate seen all year. Of course, the more you deposit, the more this bonus effect is diluted – for example if you were to deposit £20,000, then the effective rate including the bonus would be 5.66% AER – but it’s still good to have that little extra.
In order to receive the bonus, savers must enter the promo code 'OFFER100' whilst signing up for a new Raisin UK account clicking here or using the links in our best buy tables and they must do so before midday on the 30th September 2024. Once your Raisin UK Transaction Account has become active, you must apply for and open a savings account within the platform, and fund the account with a minimum of £10,000 by 11:59pm on 15th October 2024.
2 Years
Unfortunately, we lost the last of the 5% gang from the 2-year table shortly after the base rate cut, as Isbank via Raisin UK and RCI Bank withdrew their 2-year bonds.
Hampshire Trust Bank temporarily took over the top spot with a 30-month bond paying 4.97% AER, but this was swiftly withdrawn along with its leading 1-year bond that was paying 4.95% AER.
Birmingham Bank was a bit of a saviour however, launching a new market-leading 1-year bond paying 4.91% AER – but this lasted for just one day, leaving both Earl Shilton and Sensible Savings at the top, both paying 4.90% AER.
Secure Trust Bank also kept the average up a bit by launching a new 2-year bond paying 4.85% going into 2nd place. Allica was the next to make a good move by matching Secure Trust Bank paying 4.85% too. But Secure Trust Bank was withdrawn earlier this week leaving Earl Shilton and Sensible Savings at the top paying 4.90% and Allica Bank and Union Bank of India next, both paying 4.85% AER – although the latter is an 18-month bond.
3 Years
The withdrawals have continued into the 3-year table unfortunately, although the top rates available now are not too much lower than they were a couple of weeks ago.
RCI and Shawbrook started the retreat, withdrawing their top place bonds that had been paying 4.76% and 4.73% respectively. Hodge Bank was the next to go after finding itself in the top spot with a bond offering 4.72%, which left Sensible Savings and United Trust Bank in joint 1st place, paying 4.70%.
This leadership was challenge briefly by Birmingham Bank, pipping the others by the smallest of margins but taking the top spot with a bond paying 4.71%. But it was withdrawn a week later, along with a number of others from upper to mid table places, leaving Sensible Savings solo at the top once again, still paying 4.70% - how long will they last!
5 Years
In the 5-year table, there’s been a little less activity, but once again the majority of what has happened has been downwards.
The 1st casualty was the then market leading 5-year bond from Hampshire Trust Bank that was paying 4.55% AER, which left United Trust Bank (UTB) at the top paying 4.50%. However, once again Birmingham Bank stepped into the breach, pipping UTB by 0.01% to take the top spot paying 4.51%.
As with the 3-year table, left unchallenged Birmingham Bank withdrew its bond within a week and as UTB with that 4.50% bond and the next in line, Hodge Bank paying 4.49% had already retreated, this left Secure Trust Bank in the lead, paying 4.40%, with UTB’s latest offering of 4.35% in 2nd place.
UTB was later joined by the State Bank of India, also paying 4.35% and when Secure Trust Bank closed its bond at the beginning of last week, along with UTB, this has left the State Bank of India at the top, with Hampshire Trust Bank in fairly close 2nd place paying 4.32%.
1 Year
Despite the base rate reduction, Virgin Money has managed to hang on in the top spot with the 1-year ISA that is only available to those who have or open a current account with them. But at 5.05% AER this is not far behind the top gross rates of the 1-year fixed rate bonds.
Behind the Virgin account however, there’s been a bit of carnage, with many withdrawals and reductions leaving us with a top five average of just 4.79% - down from 4.95% a couple of weeks ago.
All of the previous four behind Virgin have now been withdrawn and replaced with lower paying ISAs, although Kent Reliance and Close Brothers are still featuring with ISAs paying 4.75% and 4.70% respectively. Kent Reliance is in joint 2nd place after reducing its offering from 4.91% to its current level, joining UBL which had reduced its previous offering of 4.95% to 4.75% at the beginning of the month. Similarly, Close Brothers had previously been offering 4.92% earlier in the month but made its way back into the table, joining United Trust Bank with its current offering, after several other providers withdrew too
2 Years
It’s been a little quieter in the 2-year table, although there have been many withdrawals including the top rate. UBL UK is currently in the top spot paying 4.71% - it had previously been in 3rd place, before Beehive Money withdrew its 4.73% ISA and Harpenden Building Society withdrew its 4.72% ISA last week.
Several other withdrawals means that the average has dropped to 4.56% from 4.70% so you may want to move quickly if you want to lock some cash up for a couple of years.
3 Years
The 3-Year table has suffered more with the average falling from 4.52% to just 4.32% although the top rate is now 4.51% with UBL UK, only down from 4.55% which was available with United Trust Bank and Close Brothers.
Unfortunately, it’s the rest of the table that has suffered heavy losses – the 2nd place ISA with Cynergy Bank is paying just 4.30% and taking up the rear is Secure Trust Bank paying 4.21%.
5 Years
The top 5-year ISA is still 4.26% with UBL – so that’s good news, but that’s where the good news ends. As with the 3-year table, the other entries have all dropped considerably with the 2nd position ISA paying just 4.05% with Hinckley & Rugby. UTB and Beehive were both offering 4.25% until earlier this week, so those withdrawals have been painful.
What a difference a couple of weeks makes – from a flat market to many many reductions. But there are still some pretty good rates to be found – especially bearing in mind the fact that inflation has fallen to near the 2% target – so you can find plenty of inflation busting accounts.
We’ll be back with another update in two weeks. In the meantime, remember to keep an eye on the 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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