Rates Rundown: The beginning of June sees the fixed rate market jump into action

08th June 2018

The battle in the fixed rate bond market has reignited this week, with multiple new market-leading rates launched.

Most prominent of the improvements was the new range of Fixed Savers from Atom Bank -  which included two market-leading rates.

Paragon Bank also launched a trio of new fixed rate bonds this week, with two now featuring in our best buy tables.

Also getting in on the act was Charter Savings Bank, unleashing a number of new fixed rate bonds, with the new three and five year offerings both securing positions within our top five for the respective terms.

Additionally, Charter Savings Bank launched a new version of its five year fixed rate cash ISA this week, claiming the leading spot in our table by the smallest of margins.

Then, in the final play of the week, Gatehouse Bank launched a number of new fixed term accounts, which saw the provider dominate our Sharia account best buy table.

Amongst variable rate accounts, we haven’t seen anything to shout about, with much of the top five in each category remaining the same as last week.

Fixed Rate Bonds

Atom Bank’s new range of Fixed Savers launched earlier this week with improved rates across the board - although they may not suit everyone, as you must apply via the provider’s mobile app.

Most noteworthy are its one and two year accounts, which both offer market-leading rates.

The one year account now pays 2.05% gross/AER, leading the table by a significant margin and offering the highest rate we have seen on a one year fixed rate bond since February 2016.

The two year option is paying 2.15% gross/AER, also leading the way, though this time only just ahead of the next best.

For those who prefer not to use a mobile app, Paragon Bank launched a new two year fixed rate bond this week, which is next best, paying 2.13% gross/AER and is available to open online.

The provider also launched new three and five year products, paying 2.25% gross/AER and 2.66% gross/AER respectively. As a result, Paragon has elevated itself to the joint leading position in our five year table.

Meanwhile, Charter Savings Bank now features in our three and five year tables following the launch of the latest versions of its accounts, paying 2.27% gross/AER and 2.61% gross/AER respectively.

It comes as no surprise that we continue to see Vanquis Bank occupying the leading position in both our four year* and five year* (albeit jointly) tables, while RCI Bank continues to reign over our three year table*.

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

Fixed Rate Cash ISAs 

Charter Savings Bank has remained in top position in our one year table this week, while relinquishing its lead over our two year table to Shawbrook Bank.

Shawbrook Bank this week launched a new version of its two year cash ISA, paying 1.70% tax free/AER, claiming the leading spot by just 0.01%.

Conversely, Shawbrook Bank lost its leading position in our five year table to Charter Savings Bank, again by just 0.01%.

Charter’s new version of its five year fixed rate cash ISA is paying 2.31% tax free/AER.

Further information on these accounts, along with other leading rates currently available, can be found in our full fixed rate cash ISA best buy tables.

Easy Access Accounts

This week has continued in the same vein as last - with no newcomers to the top five in this area of the savings market.

That said, we have seen a shuffle in the order of our top five, as Bank of Cyprus UK launched a new version of its Online Easy Access Account*, lowering the bonus (to 0.45%) and now pays 1.30% gross/AER – in line with both Shawbrook Bank and RCI Bank*

As a result, Paragon Bank slides into first place, paying 1.31% gross/AER on its Limited Edition Easy Access (Issue 6).

For more information and other leading rates, please refer to our easy access best buy table.

Sharia Accounts

Late in the week, Gatehouse Bank (formerly Milestone Savings), launched a number of fixed term accounts, including two market-leading rates.

The provider's new three and five year accounts pay 2.33% gross/AER* and 2.68% gross/AER* respectively and each claim a position within our Shaira account best buy table.

Although each account offers a higher rate in comparison to the standard fixed rate bond counterparts, it is important to understand the differences between them before proceeding. For more information on Sharia compliant accounts click here.


Our Bath based savings experts are on hand if you would like any help with your savings, so why not give us a call on 0800 011 9705, we’d love to hear from you.

Alternatively, if you want to keep up to date with best buy rates as the hit the market, sign up to our Rate Alert emails and follow us on Twitter.

*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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