Savers are having a tough time at the moment following the base rate reduction in August, with not only a whole host of rate cuts affecting existing accounts but also the lowering of interest rates on offer for those looking to open an alternative.
Positive moves, particularly in the previously hotly contested fixed rate bond market are few and far between and on the whole it appears that providers are trying to escape the best buys as opposed to contest them. However, we have seen a small group of providers either bucking the trend by improving the rates on offer or launching new competitive accounts, giving some hope for the future.
Atom Bank has opened the doors to the wider general public and made its competitively priced 1 and 2 year fixed rate bonds available to everyone, as opposed to on an invitation only basis, as was previously the case. As a digital bank, the accounts are only available to open through the provider’s app, so may not be for everyone.
For those looking for a more traditional fixed rate bond, there were other providers making positive moves.
Secure Trust Bank launched a new best buy 2 year fixed rate bond, its first bond available since July this year.
Vanquis Bank followed up recent improvements by increasing the rate on offer on its market leading 4 year fixed rate bond.
OakNorth Bank, a relatively new name to the savings market, has made a second set of improvements this month to its Fixed Term Deposits and is now well placed in our Fixed Rate Bond Best Buy Tables.
United Bank UK has made a return to our best buy tables, with improvements to its 2, 3 and 5 year fixed rate bonds.
Atom Bank, the first UK digital-based bank has made its fixed rate bonds available to everyone, having previously only made the accounts available on an invitation only basis. The accounts can be opened by downloading the Atom Bank App through the Apple App store or Google Play Store.
The interest rates on offer are competitive in today’s market, paying 1.40% gross/AER for 1 year and 1.65% gross/AER for 2 years. The accounts can be opened with a minimum of £50 and there is a monthly interest option available for those who prefer a regular return from their savings.
To see how the accounts compare to the rest of the market, take a look at our Fixed Rate Bond Best Buy Tables.
As one of the newest banks in the UK, Atom Bank may not be familiar to many savers and applying for an account through an app may not be for everyone. However, the provider is fully covered by the Financial Services Compensation Scheme (FSCS), so as long as you keep within the £75,000 limit, the accounts may be worth considering.
For more information on Atom Bank, take a look at our recent Provider Focus and remember, if you have any thoughts on your experiences with the provider so far, get in touch and let us know.
Secure Trust Bank has launched a new 2 year fixed rate bond paying 1.50% gross/AER. Accounts can be opened online with a minimum of £1,000 and is available to personal customers, businesses, charities and trusts. Interest must be paid to a separate account; it cannot be added to the bond.
A new best buy is always a welcome sight and it is good to see this provider back in the fixed rate bond market, with its first bond launched since July this year. The only drawback is the fact that interest would need to be paid to a separate account, so you would not benefit from compounded interest.
Vanquis Bank has launched a new version of its 4 Year Fixed Rate Bond, which is the top rate on the market for that term. This means that the provider has a bond in our 3, 4 and 5 year best buy tables, with both the 4 and 5 year fixed rate bonds in top position.
3 Year Fixed Rate Bond - 1.50% gross/AER
4 Year Fixed Rate Bond - 1.85% gross/AER
5 Year Fixed Rate Bond - 1.95% gross/AER
OakNorth Bank has improved the rates on offer on its fixed term deposits, for the second time this month and now appears in both the 1 and 2 year fixed rate bond tables. It is great to see a relatively new name to the savings market making a name for itself with competitive rates.
12 Month Fixed Term Deposit – 1.36% gross/AER
15 Month Fixed Term Deposit – 1.41% gross/AER
24 Month Fixed Term Deposit – 1.51% gross/AER
30 Month Fixed Term Deposit – 1.55% gross/AER
These changes are great news for savers who are concerned about falling rates and are looking for a fixed return for a set term. As always, when considering a fixed rate account, it is a good idea to keep some money accessible for a rainy day.
United Bank UK has improved the rates on offer on its 2, 3 and 5 year fixed rate bonds, with all three now appearing in our Fixed Rate Bond Best Buy Tables. A welcome return to the best buys from this provider, having been out of the running up to now.
2 Year Fixed Term Deposit – 1.45% gross/AER
3 Year Fixed Term Deposit – 1.55% gross/AER
5 Year Fixed Term Deposit – 1.90% gross/AER