The last few weeks has seen a marked and welcome increase in the number of new entrants into our best buy tables, with five new accounts making it into the easy access and notice account tables since the start of last week.
Tesco Bank last week and in the last few days, West Bromwich Building Society are new to the easy access table and perhaps the provider making the most waves has been Shawbrook Bank, who not only improved its easy access offering, but also launched two new market leading notice accounts in the same week.
Whilst it remains the case that we are seeing more rates falling and providers dropping out of the best buy tables, this does give us encouragement that some providers are keeping competition alive in the savings market.
This week also saw another provider enter the Help to Buy ISA market, Buckinghamshire Building Society, shunting the previously market leading Halifax out of the top five.
Tesco Bank last week improved the rate on offer on its Internet Saver account, taking it into our Easy Access Best Buy Table. The new version of the account is paying 1.21% gross/AER (the previous version was 1.16%). The interest rate includes a 0.46% bonus for the first 12 months and accounts can be opened online with a minimum of £1.
Launched this week, West Bromwich Building Society’s WeBSave Bonus Saver is paying 1.30% gross/AER, going straight into our best buy table in second position. The account can be opened online with a minimum of £1,000. The interest rate includes a 0.30% introductory bonus until 30 September 2017.
This provider has not featured in our best buys table for a while now, so it is good to see them make an appearance, particularly near the top.
Shawbrook Bank has launched its Easy Access – Issue 5 paying 1.25% gross/AER, replacing the previous version, which was paying 1.10%. Accounts can be opened online with a minimum of £1,000.
Whilst none of these providers have yet challenged RCI Bank’s (Freedom Savings Account, 1.45% gross/AER) dominant position at the top of our Easy Access Best Buy Table, it is encouraging to see providers moving rates in the right direction.
Shawbrook Bank has also launched new versions of its 120 day and 95 day notice accounts with significantly improved rates. The 120 Day Notice Personal Account - Issue 34 is paying 1.70% gross/AER (the previous version paid 1.20%) and the 95 Day Notice Personal Account – Issue 23 is paying 1.60% gross/AER (the previous version paid 1.15%). Both accounts can be opened online or by post with a minimum of £1,000 and you must give the required notice for all withdrawals, there is no option for early access subject to a penalty.
The notice account best buy table has suffered recently, as the usually dominant Charter Savings Bank pulled both its 120 day notice account and 100 day notice account in the last few weeks, leaving a gap at the top of the market. By launching these improved accounts, Shawbrook Bank has taken advantage of this gap and now occupies both the top and second position in the best buy table, improving the picture for those looking for a notice account.
The latest provider to enter the Help to Buy ISA market is Buckinghamshire Building Society, launching a new account paying 3.00% tax free/AER, taking its place in our best buy table. Whilst there are higher paying options from the likes of Santander and Penrith Building Society (both paying 4.00% tax free/AER), it is amongst the next best rates. Interestingly, it has shunted Halifax from the top five, a provider that had previously dominated this section of the market.
If you would like more information on Help to Buy ISAs, click here for our free Factsheet. To compare the top rates on the market at the moment, take a look at our Help to Buy ISA Best Buy Table.
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20th May 2016
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