🔔 🗠 Rates Rundown: New kid on the block steals the limelight

The name on everyone’s lips this week was Marcus, the new bank brought to us by Goldman Sachs.

The new provider made an immediate impact in the easy access market, blowing its rivals out of the water with a table-topping rate.

Meanwhile, Charter Savings Bank broke into the top five with its own easy access account – though it may be slightly disappointed to have its thunder stolen somewhat.

Elsewhere changes were less dramatic this week, with Paragon making the most noteworthy move in the fixed rate bond market for the second week running. The new version of its two year bond claimed pole position in our table.

With fewer changes in the other areas of the market – and the key providers in each category staying in place – we thought we would take the opportunity to run through some of the best options currently available.

So, read on for the lowdown on sharia fixed term accounts,  fixed rate cash ISAs, variable rate cash ISAs and notice accounts to help you choose the right account for your savings.

Easy Access

The big news this week was the launch of a new provider – Marcus by Goldman Sachs - and with the big unveiling came its market-leading Online Savings Account.

Paying the top rate by some margin, compared to what we’re used to seeing, the new account pays 1.49% gross/1.50% AER, with interest paid monthly.

The rate does include a small bonus of 0.15% for the first 12 months, so you may need to review things after the first year – but all in all it’s a welcome addition to the market.

You apply online for the account with a minimum of just £1, although it is worth noting that you will need a mobile phone number to complete the application.

This means that last week’s leader, Yorkshire Building Society’s Single Access Saver (1.41% gross/AER), drops to second place.

It is important to be aware that, as the name suggests, you can only access funds once throughout the 12 month period that the account runs for.

For those looking for a bonus-free account without withdrawal restrictions, the new version of Charter Savings Bank’s easy access account fits the bill. An improved rate of 1.40% gross/AER put the provider into third position.

Further information on each of these accounts can be found in our easy access best buy table.

Fixed Rate Bonds

For the second week running, Paragon grabbed the headlines in this area of the market, launching an improved two year bond paying 2.26% gross/AER.

This sees the provider rule the roost, overtaking Tandem, Bank & Clients and Investec by the smallest of margins.

ICICI Bank (2.02% gross/AER) continues to reign over our one year table for another week, as Tandem holds the top spot in our three year table (paying 2.40% gross/AER).

In the longer term four year table, Masthaven still sits in pole position, paying 2.53% gross/AER, with Vanquis Bank hot on its heels, paying 2.52% gross/AER*.

Masthaven again occupies the leading position in our five year table, paying 2.69% gross/AER, with Vanquis just behind once more – paying 2.68% gross/AER*.

For other top rates across a variety of terms, please refer to our full fixed rate bond best buy tables.

Sharia Fixed Term Accounts

It’s the BLME and Al Rayan show in this particular table, with a number of competitive options for those looking for an alternative to standard fixed rate accounts.

BLME continues to hold the top spot with its five year Premier Deposit Account, paying 2.70% gross/AER*.

If you’re looking for shorter terms, Al Rayan is paying 2.40% gross/AER for three years and BLME pays 2.05% gross/AER for one year*.

Al Rayan Bank continues to lead the way with its fixed term cash ISAs, paying 1.60% tax free/AER on its one year account and 1.80% tax free/AER for two years.

This compares favourably to standard fixed rate cash ISA accounts, as you can see in the next section.

Please refer to our sharia fixed term accounts best buy table for more information on the accounts above and read our recent article for more on sharia accounts and how they work.

Fixed Rate Cash ISAs

We still have joint leaders in our one year table, with Paragon and United Trust Bank both paying 1.55% tax free/AER.

In our two year table, Shawbrook Bank continues to sit ahead of the pack, paying 1.75% tax free/AER and Monmouthshire Building Society remains in the leading position in our three year table, paying 1.91% tax free/AER.

Finally, our five year table also has joint leaders, this time in the form of Coventry Building Society and United Trust Bank - both paying 2.30% tax free/AER.

To view our top five accounts across a variety of terms, please refer to our full fixed rate cash ISA best buy tables.

Variable Rate Cash ISAs

Charter Savings Bank continues to lead the way, paying 1.40% tax free/AER on its 95 day notice account, seemingly difficult to budge from top spot.

Behind Charter, we find Al Rayan Bank and Virgin Money, both paying 1.35% tax free/AER on their respective easy access cash ISAs. Although it is worth noting that Virgin Money’s offering limits you to just two withdrawals each year.

For further information on these accounts and to see how the top five stacks up, please refer to our variable rate cash ISA best buy table.

Notice Accounts

Last but not least are notice accounts, which can be seen as an interesting compromise between easy access accounts and tying up your money up for a fixed term.

PCF Bank holds onto the leading spot again this week with its 180 day notice account, paying 1.85% gross/AER.

Paragon offers the top rate for a 120 day notice account (1.80% gross/AER), while OakNorth is paying 1.77% gross/AER on its 90 day notice account.

Making up our top five are accounts with shorter notice periods. Kent Reliance’s 60 day notice account and Charter Savings Bank’s 30 day notice account are paying 1.50% gross/AER and 1.36% gross/AER respectively.

For further information on these accounts, please refer to our notice account best buy table.

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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