New higher rates across our best buys
We have witnessed further improvements across a range of our best buy categories over the last two weeks.
This extends the glimmer of hope that the tides may be changing, starting to favour savers rather than working against them.
We hope that these improvements cascade further through the market and spur on other providers to follow suit.
If we first look at the easy access best buy table, waves were made by Bank of Cyprus UK, with the launch of its brand new Online Easy Access Account, which has immediately landed itself a spot in our best buy tables.
If we look across to the fixed rate bond tables, Charter Savings Bank launched a new version of its 1 year fixed rate bond, with a market-leading rate which inevitably took the top spot.
Finally, glancing at the fixed rate cash ISA tables, Paragon Bank launched a market-leading account, in the form of its 2 year fixed rate cash ISA. This follows a stream of new ISAs from various providers since the start of the new tax year.
Bank of Cyprus UK entered the fray with its new Online Easy Access Account, paying 1.05% gross/AER. Although not challenging for the top spot in our easy access best buy table, it is encouraging to see a new provider entering the table.
You can apply for the new account from Bank of Cyprus UK online with as little as £1 and manage the account via the same means. It is important to be mindful that this rate does include a bonus for the first 12 months, after which you may need a new place for your funds, as the rate will reduce significantly.
Although not making a charge for the top spot, this new entrant does have the alluring attribute of being free of any withdrawal restrictions, which cannot be said for the market-leading Yorkshire BS account nor the account from Britannia.
With this in mind, RCI Bank continues to lead the assault with its Freedom Savings account paying 1.10% gross/AER, which is free from withdrawal restrictions and does not include any bonus enhancing the rate.
Glancing to the fixed rate bond market, we have seen Charter Savings Bank take command of the 1 year fixed rate bond table. With a new market-leading rate of 1.55% gross/AER. This account is both applied for and managed online and can be opened with a minimum of £1,000.
In addition to paying the market-leading rate, you also have the option to receive interest payments on a monthly basis, which could provide a regular source of income for those who prefer it.
Finally, a look to the fixed rate cash ISA market and we see Paragon Bank making positive moves. Its 2 Year Fixed Rate Cash ISA climbed to the peak of the table, paying 1.26% tax free/AER, which is available to open and manage online, with a minimum of £500.
Not only does this account give the option of having monthly interest payments, it also allows transfers in of previous tax years’ ISA allowances. So, this account could be a suitable option for funds accrued over the years.
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.