It’s been full of action over the last couple of weeks – but unfortunately mostly in the wrong direction as the savings market reacts to the NS&I rate cut announcement.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (09/10/2020). All up-to-date rates can be found on our Best Buy tables
Unfortunately, the NS&I news has had an immediate impact which has seen even the best easy access rate available fall to less than 1% AER.
Coventry Building Society has had three different issues of its Double Access Saver (Online) account – each one offering a lower rate, although the current issue (4) is still sitting in the top spot offering a rate of 0.96% AER. As the name suggests, only two penalty free withdrawals can be made a year.
Newcastle Building Society made a vey brief appearance with its Triple Access Saver paying 1.05% AER – but it was only available for two days – and, as seems to be more and more common, it has a number of features that you need to be aware of including restricted withdrawals and a rate guarantee that will end next year.
Once again it’s been very busy in the Fixed Rate Bond market with best buys being withdrawn willy nilly – but unfortunately, overall rates have simply been on the decline. There have a been a couple of bright moments – SmartSave swept into the top spot of the 1, 2 and 3 year tables – but these were only available for a day. And The Melton Building Society introduced a 2-year bond paying a market-leading 1.41% AER – but it was not around for long either.
It’s worth keeping a close eye on the fixed rate bonds as from time to time a nugget pops up – but if you don’t move quickly, you’ll probably miss it.
There’s been a bit of jostling in the Sharia Fixed Term table – but overall the rates are the same, with the best 1-year paying 1.26% AER (Al Rayan Bank) and the best 5-year still 1.60% AER with BLME.
However, with rates falling elsewhere, this does mean that the Sharia accounts are stretching ahead of the Fixed Rate Bonds – so worth a look.
Secure Trust Bank reappeared into the Best Buy table this week, albeit offering a slightly lower rate on its new 90 Day Notice offering. It also launched a 30 Day Notice Account offering the best rate for this notice term.
But as seems the be the theme, the accounts were withdrawn at the end of the week, leaving BLME back in the top spot.
The Variable Rate ISA table has been quieter this week – but the general negative mood saw Cynergy Bank making its best buy Online ISA (Issue 5) account available to existing customers only. So once again, as with the Easy Access accounts, the best rate provided by Coventry Building Society, is less that 1% - at 0.96% AER. And once again, this is a restricted access account – only three penalty free withdrawals allowed per year.
Fixed Rate ISAs have been much steadier over the last couple of weeks and in fact Secure Trust Bank launched new 1 and 2 year ISAs, pipping the competition. These new accounts mean that the bank is now taking up the top spot over 1, 2 and 3 years paying 0.91% AER, 1.01% AER and 1.11% AER respectively.
It has been a busy week for keeping the Best Buy tables up to date – and unfortunately things have been on a downward trajectory. So it’s worth keeping an eye out for the very best rates, as they might be snapped up.
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