🔔 Rates Rundown - activity slows but there are still nuggets to be found

Author: Anna Bowes
20th May 2022

As spring heads towards summer, the battles in our best buy tables are slightly calmer but rates are up across the board once again, so good news for savers who will really be feeling the pinch of continued rising inflation. We can't beat inflation, but choosing the best rates can help to mitigate it.


RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (20/05/2022). All up-to-date rates can be found on our Best Buy tables.

Easy Access

As has been the case now since the end of March, Chase continues to remain unchallenged at the top of the best buy table, paying 1.50% AER on its Chase Saver Account. 

And unfortunately, the activity has slowed considerably for the other four spots. The most significant move came from Al Rayan Bank, which has increased the rate on its Everyday Saver Issue 2 for both existing and new customers from 1.10% to 1.31% AER – so moving into the 2nd place, pushing Gatehouse into 3rd place paying 1.30% 

There is a little battle for the remaining two spots though, as there are now four accounts paying 1.25% AER. The victorious two are Atom Bank and Tandem as neither have either restricted access or bonuses that savers need to be aware of. Let’s hope there is some further retaliation in the coming weeks - to get the action going again. Will anyone topple Chase?

Notice Accounts

We have seen several providers battling it out in our Notice Best Buy table over the last two weeks and as a result the best paying account is now offering 1.65% AER – although you will only have access after six months’ notice. This account is with Oxbury Bank who has added to its stable of notice accounts with the introduction of its Personal 180 Day Notice Account Issue 1.

The best 120-day notice account is the 120 Days Notice Deposit Account – Issue 16 from OakNorth Bank paying 1.60% AER.

Finally, a late move this week from UBL UK sees the bank flying the flag for 90 day notice accounts, increasing the rate for both new and existing savers on its simply named 90 Day Notice Account, now paying the top rate of 1.57% AER.

Fixed Rate Bonds

One again we have seen rates increase across each of our fixed rate bond tables over the last couple of weeks with the most impressive increase seen in the 2-year table.

But first things first. Over 1-year the best rate on offer increased to 2.27% AER this week – we haven’t seen anything as high as this since 2013! That bond was with Vanquis and although it is still being advertised on their site, it has already been oversubscribed - after just a couple of days. But the next best rate is only marginally less at 2.26% AER – and with two providers, Tandem and Secure Trust Bank. You can now open Tandem Fixed Rate Bonds online, as well as via their app, which might make it attractive to many more savers.

The remaining spots are all paying 2.25% AER - so the average of the top five has risen from 2.13% a couple of weeks ago, to 2.25% now.

So, onto the 2-year table. A couple of weeks ago, the best rate was 2.50% but that has been gradually pushed upwards. First, Hodge Bank launched a bond paying 2.58% but this was very short-lived and was withdrawn just a couple of days later, which gave PCF Bank its moment in the sun with its latest offering paying 2.55% AER. However, Tandem launched a new bond also paying 2.55% - but then both were toppled by Secure Trust Bank paying 2.60%. But the battle continued and earlier this week Ikano took the top spot offering 2.65% - however this was knocked out of the park by Market Harborough Building Society paying 2.75% - which still remains victorious at the time of writing.

Across now to our 3-year table and the increases continue – although interestingly the best rate is also 2.75% - so the same as the best 2-year, which illustrates just how competitive that Market Harborough bond is. The 3-year bond is from Ikano bank.

A couple of weeks ago the best 3-year bonds were paying 2.60% AER – today the bond in position five is paying 2.65%. It’s great to see rates continuing to improve.

Finally for the fixed rate bond arena, the 5-year offerings. This has been less impressive but an overall increase nevertheless. The top rate is now 2.85% AER (launched on Friday by Tandem), up from 2.80% a couple of weeks ago and the average of the top five has risen from 2.67% to 2.82% today. Hodge is in 2nd place paying 2.83% and that remainder are all paying 2.80% AER.

So, with leading rates higher than we have seen for many years across the board it is certainly looking like things are heading in the right direction for savers, and we hope to see this upward trend continue.

Fixed Rate ISAs

The fixed rate cash ISA tables have been pretty active – over the shorter term in particular and the trend of better best buys available continues.

In our 1-year table, the first challenger for the top spot came from Hampshire Trust Bank (HTB) knocking Shawbrook off the top spot by 0.01% with an ISA paying 1.61% AER. But the following day Aldermore launched a new ISA paying 1.65% which remained in the top spot until Friday when Virgin Money launched the new top rate of 1.70%.

Virgin Money has also been active in the 2-year table launching a new ISA paying 2.10% AER along with Charter Savings Bank, paying the same rate. Both go into joint 2nd place, just behind Castle Trust Bank which is paying the market leading 2.11% AER.

Castle Trust Bank and Virgin Money are clearly on a mission to raise some fixed rate ISA cash as they have also battled it out for the top spot in the 3-year Fixed Rate Cash ISA table. Once again Castle Trust has just pipped Virgin Money paying 2.21% AER compared to 2.20%.

There’s not been the same kind of activity across to our 5-year table although the best rate on offer is higher than it was a couple of weeks ago. The top four spaces are taken up by Furness Building Society, UBL, United Trust Bank and Secure Trust Bank – all paying 2.20% AER. Leaving Shawbrook clinging onto the last place with its previous table topping ISA paying 2.15%.

Variable Rate ISAs

There’s not much to report – although it was good to see Marcus improve the rate on its Cash ISA to 1.15% AER, taking the top spot from Al Rayan Bank. This does include a 0.10% bonus for 12 months, but you can renew this at any time, resetting the 12-month bonus period, so worth doing periodically.

Sharia Fixed Term Bonds

Al Rayan and Gatehouse Bank continue to dominate this table and a new 1-year offering from Gatehouse paying 2.30% AER is the best paying 1-year bond on the market. This account can also be opened via the Raisin UK cash platform* where new customers, using the link on our website, can benefit from a welcome bonus of £25 on a deposit of at least £10,000, boosting the rate. For example, if you deposit £10,000 into the bond paying 2.30% you would earn £230. Add the bonus and that equates to an effective return of 2.55% AER. If you are eligible for a bonus, you must claim it by emailing [email protected] with the subject 'Raisin UK Bonus' - using the same email address as you used to register. In the email, please add your full name. You can make the claim as soon as you have been notified that your savings account has become active. 

It's encouraging to see best buy rates have been improving - let's hope there is more to come following the Band of England base rate increase on 5th May. Keep a close eye on our Best Buy tables for up to the minute information.

*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 (*).