Unlike the summer weather - competition in the savings market heats up. Improvements have continued to come over the past fortnight across a variety of savings products, including a number of new market-leading rates.
Easy Access Accounts
It is important to be aware that the rate of 1.30% gross/AER includes a 0.70% bonus for the first 12 months.
After this period has expired, the rate will reduce significantly, so a new home for funds may be required to maintain a competitive interest rate.
Staying with easy access accounts, West Brom Building Society has made an appearance in our best buy table with the offering on its new WeBSave Single Access account, paying 1.20% gross/AER.
As stated in the name, this account allows one easy access withdrawal each account year (1st May to 30th April). Additional withdrawals can be made, subject to the rate reducing to 0.25% for the remainder of the account year.
Fixed Rate Bonds
Across in the fixed rate bond sector, we have seen new market-leading rates from both Vanquis Bank and PCF Bank.
There is little to split the two, as both pay the same rate, 2.25% gross/AER and 2.50% gross/AER on respective 4 and 5 year products, both providers require a minimum deposit of £1,000, along with both providers offering online applications. However, PCF Bank also accept postal applications, which could suit those who do not wish to use online channels for financial matters.
Finally, for those that may be looking to boost monthly income, Vanquis Bank offers the choice for monthly interest payments, whereas PCF Bank only offer annual interest payments.
Best Cash ISAs
Switching our attention to the cash ISA domain, and first looking at the easy access cash ISA market, Paragon Bank has launched a new version of its Limited Edition Easy Access (Issue 2) cash ISA, paying 1.05% tax free/AER, matching the rate from Leeds Building Society on its Limited Issue Online Access ISA, the joint market-leading rate for an easy access cash ISA.
You can open and operate this account from Paragon Bank online with a minimum balance of £1. This account is not only offering the top rate, but you can also opt for monthly interest payments should you prefer it.
Amongst the fixed rate cash ISA market, Yorkshire Bank and Clydesdale Bank demanded our attention. The providers launched new 3 year Cash ISA Fixed Rate Bonds paying 2.00% tax free/AER, head and shoulders above the rest of the field for the respective term.
It is important to note that the although this account can be open online or in branch; management of the account is conducted via post or branch, this cannot be done online.
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 011 9705.