New Year's rates rundown

05th January 2017

With Christmas and the New Year festivities occupying everyone, including providers, over the last few weeks, inevitably there have been few changes in the savings market, particularly amongst the best buys. However there have been some notable positive launches in that time, that you may have missed.

Firstly, launched in the notoriously quiet period between Christmas and the New Year, was a new market leading notice account from Secure Trust Bank.

We have also seen improvements from Aldermore, with its 2 and 3 year fixed rate cash ISAs now market leading and its 1 year ISA making it into our top five.

Following its arrival in the savings market at the end of November, new provider Masthaven Bank made further improvements to its fixed rate bond range, with the 3 year bond joining its 4 and 5 year bonds at the top of our best buy tables.

Finally, hot off the press today is a new market leading easy access account from Post Office. Making it to the top of our best buy table by the smallest of margins, nevertheless it is a step in the right direction.

Secure Trust Bank has launched a new notice account, which went straight in at the top of our Notice Account Best Buy Table. The 90 Day Notice Account (Issue 3) pays 1.31% gross/1.32% AER and can be opened online with a minimum of £1,000. You are restricted to a maximum of three withdrawals of capital and four withdrawals of interest per calendar year, with each withdrawal subject to 90 days’ notice. In addition to personal customers, the account is also available to businesses and charities.

Launched in the quiet period between Christmas and New Year, some may have missed this competitive new account. Matching the gross interest rate of the market leader from Charter Savings Bank, this account occupies top spot in our table by virtue of its shorter required notice period. Unusually for a notice account, you are restricted to a set number of withdrawals per year, as well as having to give notice, so withdrawals will need to be planned carefully.

Aldermore has made improvements to its range of fixed rate cash ISAs. The 1 year ISA pays 1.00% tax free/AER (the previous version was 0.95%), the 2 year ISA pays 1.20% tax free/AER (the previous version was 1.15%) and the 3 year ISA pays 1.25% tax free/AER (the previous version was 1.20%). Accounts can be opened online or by post with a minimum of £1,000 and transfers in from previous ISAs are allowed. Withdrawals from the ISAs are allowed, subject to 120 days’ loss of interest for the 1 year ISA and 180 days’ loss of interest for the 2 and 3 year ISAs, on the amount withdrawn.

With many of the recent improvements made to fixed rate bonds, it is refreshing to see a provider making positive changes to its fixed rate cash ISA range. Of the three new accounts, the 2 and 3 year ISAs are the most noteworthy, as the new rates are both market leading, although the 1 year ISA still makes it into our top five.

New to the savings market and launching with a set of competitive rates at the end of November, Masthaven Bank has made further improvements to some of its rates, with its 3 year fixed rate bond now market leading, joining its 4 and 5 year bonds at the top of our best buy tables.

This new provider has certainly been grabbing attention since its launch and hopefully it will maintain its competitive edge going forward, encouraging others to make improvements to their own rates as well.

Interestingly, the provider gives you the option to choose your own term, so for the exact interest rate for your chosen term, please see Masthaven Bank's website. Below is a summary of some of the more common terms.

1 Year Fixed Term Bond - 1.35% gross/AER
2 Year Fixed Term Bond - 1.53% gross/AER
3 Year Fixed Term Bond - 1.67% gross/AER
4 Year Fixed Term Bond - 1.84% gross/AER
5 Year Fixed Term Bond - 2.01% gross/AER

For more information on the provider, take a look at our recent Provider Focus Article.

Post Office has launched a new version of its Online Saver (Issue 23) paying 1.01% gross/AER, replacing the previous version which was paying 0.90%. Accounts can be opened online with a minimum of £1 and the interest rate includes a 0.76% bonus for the first 12 months.

It is good to see a new market leading easy access rate, beating the previous leaders by the smallest of margins. It is worth bearing in mind that the interest rate includes a hefty bonus for the first year, so you may need to switch after that time. If you would prefer to avoid an account with a bonus, there are alternatives available on our Easy Access Best Buy Table.

If you would like to discuss further options or would like any help with your savings, please get in touch. Our Bath-based savings experts would love to hear from you, so call us on 0800 321 3581. 

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