Rates Rundown: whilst not reaching the highs of the last few weeks, there have been positive moves…

12th July 2018

Following a positive few weeks, where there has been a rush of new best buys, this week has been slightly more subdued, though there are still competitive rates to be had.

Following last week’s continued competition in the easy access arena, this week saw two more providers improving their offerings and join in the race to the top of our easy access best buy table.

Tesco Bank made the first move, improving the rate on offer on its Internet Saver to sit within touching distance of the leaders.

Paragon relaunched its best easy access offering, joining Tesco Bank near the top end of the market.

Paragon also relaunched its competitive easy access cash ISA, moving up our variable rate cash ISA table to sit just behind the top-paying accounts.

Elsewhere Secure Trust Bank reacted to the challenge of OakNorth by upping the rates on its 90 day and 120 day notice accounts.

The fixed rate bond arena has been unusually quiet this week so far, with few changes of note – although there are competitive rates available.

It’s a similar story with fixed rate cash ISAs, with few changes to report – but it is certainly worth reading on for a summary of the best deals currently on the market.

If you’re looking for something a little different to standard fixed rate bonds or cash ISAs, our Sharia account best buy table contains a number of competitive fixed rate accounts to consider.

Hopefully the level of activity will get back to what we have been used to seeing over the last few weeks – so watch this space and we will keep you up to date with all the latest news.


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Easy Access Accounts

The last few weeks has seen greater levels of activity in this area of the savings market and this week has been no exception, with two providers making a play for the best buys.

Tesco Bank upped the rate on offer on its Internet Saver to 1.31% gross/AER, sitting tantalisingly close to the leading providers.

However, it is worth noting that the interest rate includes an introductory bonus of 0.76% for the first 12 months – so you may well need to look for an alternative after the first year.

Meanwhile, Paragon relaunched its Limited Edition Easy Access (Issue 6), paying 1.31% gross/AER, although this time there is no introductory bonus to be aware of and it is why this account makes our top five ahead of Tesco Bank.

National Counties Building Society is still joint top with its 4th Issue Classic Saver, paying 1.35% gross/AER.

It is worth noting that the account requires a minimum balance of £5,000 and once we reach 31 July 2018, no further funds can be added to the account. So, it will not suit those who want to add funds after the end of the month.

Alongside National Counties at the top of the table is Coventry Building Society – its Limited Access Saver is paying 1.35% gross/AER.

This account also has a number of terms and conditions to get your head around. You are able to make just three easy access withdrawals per year, any withdrawals after that are subject to a penalty equivalent to 50 days’ interest on the amount withdrawn. In addition, the rate includes a 0.35% bonus for the first 12 months, so the rate will drop after the first year.

Next comes Bank of Cyprus UK, with its Online Easy Access Account paying 1.34% gross/AER*.

The account from Bank of Cyprus UK also has an introductory bonus, so the rate will fall after the first year and you may need to look at an alternative at that point.

For more information on these accounts and for other leading rates, please refer to our easy access best buy table.


Variable Rate Cash ISAs

Having entered the easy access table this week, Paragon also relaunched its Limited Edition Easy Access ISA (Issue 4) - again paying 1.31% tax free/AER and taking third place in our best buy table.

Currently in first position is Charter Savings Bank, paying 1.40% tax free/AER on its 95 day notice cash ISA.

Paragon also currently sits behind the top-paying easy access cash ISA from Al Rayan Bank, paying 1.35% tax free/AER.

For more information on all three accounts, take a look at our variable rate cash ISA best buy table.


Notice Accounts

Secure Trust Bank has improved the rates on offer on two of its notice accounts this week, in an effort to regain its dominance of our best buy table.

The new version of its 120 day notice account is paying 1.74% gross/1.75% AER and the new 90 day notice account is paying 1.69% gross/1.70% AER.

This puts the provider pretty much on a par with OakNorth’s 90 day (1.69% gross/AER) and 120 day (1.74% gross/AER) notice accounts.

Top spot is still occupied by Secure Trust Bank's 180 day notice account (1.77% gross/1.78% AER).

For further detail and other options, please visit our notice account best buy table.


Fixed Rate Bonds

This is often one of the busiest areas of the market for best buy changes, however there was a definite lull in activity this week.

That said, there are a number of competitive accounts to choose from over a range of different terms.

In our one year table, Atom Bank still rules the roost (2.05% gross/AER), with OakNorth next in line (1.96% gross/AER).

The market leader in our two year table is Investec – paying 2.20% gross/AER.

However, those looking to deposit smaller amounts may need to look elsewhere as the minimum deposit is £25,000. Secure Trust Bank is the next best at 2.18% gross/AER with a minimum of just £1,000.

Market leading amongst three year bonds, albeit by the smallest of margins, is Masthaven - paying 1.32% gross/AER*.

Amongst longer term fixed rate bonds, Secure Trust Bank leads the way for both four years (2.51% gross/AER) and five years (2.67% gross/AER).

For more information on each of these accounts and for other options, please refer to our full fixed rate bond best buy tables.


Fixed Rate Cash ISAs

Again, few headlines this week in this area of the market, but most of the leading accounts from last week are still in place.

Wesleyan Bank is paying a market-leading rate of 1.55% tax free/AER for one year, though it is worth noting that the account requires a comparatively high minimum opening balance of £20,000 - so may not suit those with smaller amounts to save.

Next best is Bank of Cyprus UK – paying 1.52% tax free/AER*.

Elsewhere, Shawbrook Bank dominates the leading positions in our two, three and five year tables, paying 1.70% tax free/AER, 1.85% tax free/AER and 2.30% tax free/AER respectively.

Further information on these accounts, along with other leading rates currently available, can be found in our fixed rate cash ISA best buy tables.


Sharia Accounts

If you’re looking for something a little different to standard fixed rate bonds or cash ISAs, Sharia fixed term accounts may be worth considering.

For five years, Gatehouse Bank pays 2.68% gross/AER. For shorter terms, BLME pays 2.35% gross/AER for three years* and 2.05% gross/AER for one year*.

For a fixed term cash ISA, the rates also compare favourably with the standard equivalents – Al Rayan pays 1.80% tax free/AER for 24 months and 1.60% tax free/AER for 12 months.

Please refer to our Sharia account best buy table for more information on the accounts above and take a look at our recent article here for more on Sharia accounts and how they work.


Our Bath based savings experts are on hand if you would like any help with your savings, so why not give us a call on 0800 011 9705, we’d love to hear from you.

Alternatively, if you want to keep up to date with best buy rates as they hit the market, follow us on Twitter and sign up to our Rate Alert emails.


*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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