As May ends we have seen further movement across the savings market
With the month ending, we have seen further improvements made across a range of savings accounts, with new market-leaders and contenders across a variety of savings products.
Charter Savings Bank launched a new 2 year fixed rate bond, that raced straight to the top of our best buy table for the term. Meanwhile the provider continues to hold onto top position in the 1 year table as well.
Amongst notice accounts, Secure Trust Bank launched a new 90 day notice account, offering the top rate on the market.
We have seen an improved variable rate cash ISA launched from VirginMoney, which has seen the provider return to our best buy table.
Paragon Bank now dominates the fixed rate cash ISA market, following the launch of its new 5 year fixed rate ISA, which preceded the release of new versions of its 2 and 3 year cash ISAs. All of which have taken top spot in our fixed rate cash ISA best buy tables for the respective terms.
We will have to wait and see if this show of dominance ignites reactions from other providers and perhaps pushes rates even higher.
Already leading the market in the 1 year fixed rate bond table, Charter Savings Bank launched a new 2 Year Fixed Rate Bond, paying 1.76% gross/AER, which has seen the provider top the 2 year table as well. This account is available to open online, with a minimum of £1,000.
Although you are not permitted to access the funds for the duration of the bond, you can opt for monthly interest payments into a nominated account.
Amidst the notice account best buys, we have seen a new entrant in the form of Secure Trust Bank, following the launch of its 90 Day Notice Account, paying 1.29% gross/ 1.30% AER. You must apply for this account online with a minimum of £1,000 and instructions for the account can be given over the telephone or in writing.
This new account matches the rate on offer from Paragon Bank (1.30% AER), although it has a far shorter notice period. That said, the account from Secure Trust Bank does carry with it restrictions on the number of withdrawals that can be made each year, which is important to be aware of and plan around.
VirginMoney has returned to our variable rate best buy table, with a new version of its Defined Access Cash ISA, paying 1.05% tax free/AER. This account can be opened with a minimum of £1 and allows transfers in of previously accrued cash ISA funds. You can apply and access this account either online or a branch and postal version is also available.
It is important to note that although this account offers a competitive interest rate, it does carry with it a restriction on the number of withdrawals that can be made each year, before the rate drops significantly.
Paragon Bank launched a new version of its 5 year Fixed Rate cash ISA and within a matter of days came the launch of new versions of its 2 and 3 Year Fixed Rate cash ISAs. All three accounts are now paying market-leading rates and top their respective best buy tables.
All three of these accounts can be opened and operated online, with a minimum of £500 and offer the option of monthly interest payments, for those that would like it. They also give the option to access funds within the term without having to close the account, however a hefty penalty will apply, so be aware of this before proceeding.
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.