New providers always give us a bit of a spring in our step – and this week we’ve had two - although one is a returning past favourite as opposed to brand new!
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (19/02/2021). All up-to-date rates can be found on our Best Buy tables.
Although it’s not yet caused much of a stir, possibly the biggest news of the week is the return of the Online Savings Account from Marcus by Goldman Sachs. As our article In with the old… and in with the new! elaborates, although the account has re-entered the best buy table in the top spot, with a rate of 0.50% AER, it is actually matching a couple of other accounts – but it has no restrictions on the number of withdrawals, unlike the others. So far it hasn’t encouraged any further competition – let’s see what happens next!
There was some more good news in the Fixed Rate Bond market this week – the exciting introduction of a new provider, Oxbury Bank.
It’s a bank dedicated to servicing British Farmers, however, you don’t have to be involved in the farming industry to open a saving account with them. And at the moment they are offering the top 18 month (0.70% AER), 2 year (0.75% AER) and 3 year (0.90% AER) fixed rate bonds and offering the second highest rate over 5 years (1.17% AER).
So, well worth a look.
Gatehouse Bank is still paying the best rate on the market with its 5 Year Fixed Term Green Saver paying 1.50% AER – and its 3 Year Fixed Term Green Saver is paying 1.25% AER. However, unfortunately it has withdrawn its 2 Year Bond and replaced it with a new issue paying a lower rate of 0.77% AER.
Although this rate is still competitive, Sharia provider QIB (UK) Limited is now offering the best 1 year paying 0.65% AER, the best 18 month paying 0.75% AER and the best 2 year term paying 0.85% AER, via the Raisin UK Platform*.
Considering we are now well on the way to peak ISA season, it's extremely disheartening to see that there is nothing of interest to report. Unfortunately this is could well be a sign of what to expect over the coming weeks - very little, which is really disappointing for those who still benefit from this tax haven.
All we can suggest is that you still shop around for the best you can find. If you do pay tax on some or all of your savings, then at least the best cash ISAs are paying more that the net interest you could earn on a taxable savings account.
We'll be back next time - let's see what the next couple of weeks bring us.
*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 (*).