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.
If we first look at the easy access arena, we have seen Bank of Cyprus UK launch a new version of its Online Easy Access Account with a market-leading rate. Meanwhile West Brom Building Society has also secured itself a spot in our best buy table.
Amongst fixed rate bonds, both Vanquis Bank and PCF Bank launched a number of improved rates across a spectrum of terms, many of which feature in our best buy tables, with multiple market-leading rates.
Turning our attention to the cash ISA market, Paragon Bank made an improvement in the variable rate cash ISA sector, whilst Yorkshire Bank and Clydesdale Bank launched market-leading rates in the fixed rate cash ISA domain.
Bank of Cyprus UK has propelled itself up our easy access best buy table with the new market-leading rate offered on its Online Easy Access Account. 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.
Across in the fixed rate bond sector, we have seen new market-leading rates from both Vanquis Bank and PCF Bank. Seemingly battling for the top spot, improvements from PCF Bank landed the provider the lead position in our 4 year table, only to be matched by Vanquis Bank within a matter of days.
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.
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 321 3581.