🔔 Rates Rundown: fixed term account activity picks up as kids go back to school

Following a half term slowdown, there was more positive action in the savings market over the last week – particularly amongst fixed term accounts.

Sharia compliant accounts are consistently among the very best rates available and this week Gatehouse Bank made some eye-catching improvements.

>> Sharia fixed term account best buy table

In addition, these accounts are also available through the Raisin UK savings platform, where a welcome bonus of up to £100 is available for new customers.

>> Find out more about Raisin UK

For those looking for a home for their ISA allowance, as we start to build up towards the end of the 2018/19 tax year, there were plenty of competitive fixed rate cash ISAs launched from the likes of Kingdom Bank, Charter Savings Bank and United Trust Bank.

>> Top-paying fixed rate cash ISAs

There were also a range of improvements amongst fixed rate bonds, including new accounts from BM Savings, Vanquis Bank and Arbuthnot Direct, a new name to the market.

>> What are the best fixed rate bond rates?

There was less activity this week in the variable rate best buy tables, though the top-paying options remained in place for another week.

>> Latest easy access best buys

>> Top-paying variable rate cash ISAs

For an overview of the whole savings market and to look at the top options in all categories, make sure you consult our independent best buy tables and if you want to keep up to date with best buy rates as they hit the market, sign up to our Rate Alert emails.

Sharia Fixed Term Accounts

One of the key set of changes of the week came from Gatehouse Bank, launching new market-leading versions of its two year, three year and five year fixed term accounts.

>> 2 year Fixed Term Deposit: 2.45% gross/AER*

>> 3 year Fixed Term Deposit: 2.50% gross/AER*

>> 5 year Fixed Term Deposit: 2.75% gross/AER*

Not only do these accounts make it into our best buy table, but they outstrip the standard fixed rate bond equivalents.  

In addition, these accounts are also available through the Raisin UK savings platform, where a welcome bonus of up to £100 is available for new customers.

>> Find out more about Raisin UK

For those looking for a shorter term, BLME is top of the pile, paying 2.20% gross/AER – head and shoulders above the rest of the one year fixed term market.

Please refer to our Sharia fixed term accounts best buy table for more information on the accounts above.

>> How do Sharia compliant accounts work?

Fixed Rate Cash ISAs

As we head towards the end of the current tax year, activity is starting to ramp up in this area of the market, with several providers coming to the fore this week.

First up is Kingdom Bank, which threw down the gauntlet to the competition by launching a new market-leading one year fixed rate cash ISA paying 1.80% tax free/AER.

The new account is top of the table by a clear margin and it will be interesting to see whether other providers rise to this challenge.

Elsewhere, Charter Savings Bank took the fight to the two and three year best buy tables, launching new market-leading versions of its accounts that pay 1.95% and 2.05% tax free/AER respectively.

Also launched this week was an improved version of United Trust Bank’s five year fixed rate cash ISA, which matches the current incumbent of top spot, Coventry Building Society with both providers paying 2.30% tax free/AER.

To view our top five accounts across the full range of terms, please refer to our full fixed rate cash ISA best buy tables.

Fixed Rate Bonds

This week also saw a handful of providers make improvements in the fixed rate bond arena.

With a number of top-paying one year fixed rate bonds dropping out of the running in recent weeks, it was interesting to see Birmingham Midshires buck the trend and launch a new market-leading option.

The new account pays 2.00% gross/AER, topping our table by a clear margin.

Meanwhile, OakNorth leads the way in our two year table, paying 2.28% gross/AER.

In our three year table, there is a five-way tie at the top, with Aldermore*, ICICI Bank*, Masthaven, Tandem and new kid on the block Arbuthnot Direct all paying 2.40% gross/AER.

>> Find out more about new name Arbuthnot Direct

If you are looking for a longer-term fixed rate bond, this week we saw an improved offering launched by Vanquis Bank - now paying a market-leading 2.59% gross/AER for five years.

For full information on each of these accounts and for a range of other options, please refer to our full fixed rate bond best buy tables.

Easy Access Accounts

For those looking for easy access to their money, The Family Building Society is still top of the table, with its Premium Saver paying 1.51% gross/AER.

The account does have a funding cut-off date of 8 March 2019, after which you cannot add further funds to the account and there is a comparatively high minimum balance requirement of £15,000.

Then comes Cynergy Bank* and Marcus by Goldman Sachs, which both pay 1.50% AER and feature introductory bonuses as part of the headline rates.

Virgin Money is also paying 1.50% gross/AER; however, its Double Take E-Saver does restrict you to just two withdrawals per year – so may not suit everyone.

So, with a number of introductory bonuses and other restrictive terms and conditions evident amongst many of the top-paying accounts, Shawbrook Bank (1.43% gross/AER) offers something a little more straightforward – albeit at a lower rate.

Further information on the leading accounts can be found in our easy access best buy table.

Variable Rate Cash ISAs

Top of our variable rate cash ISA table is Kingdom Bank, with its One Year Base rate plus cash ISA paying 1.50% tax free/AER.

As the name of the account suggests, the interest rate tracks movements in the Bank of England base rate – so it will go up or down with any base rate changes during the term.

The rate is guaranteed to be 0.75% above the base rate for the one year term. It is worth noting that you cannot make withdrawals within the term, although you can transfer it to another provider, if you pay the required penalty.

Next up is Virgin Money’s Double Take E-ISA, which is paying 1.45% tax free/AER, but you are restricted to just two withdrawals per year.

Matching this account is the 95 day notice cash ISA from Charter Savings Bank, where you have to give notice to withdraw your money.

The top-paying easy access cash ISA that has no introductory bonus or withdrawal restrictions comes from OakNorth, paying 1.44% tax free/AER.

For further information on these accounts, please refer to our variable rate cash ISA best buy table.

If you would like any help with your savings, why not give one of our Bath-based experts a call on 0800 011 9705, we’d love to hear from you.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

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