Rates rundown: An increase in activity this week, with fixed rates taking centre stage…

03rd February 2018

Following a relatively quiet week for new accounts, the last seven days has seen more activity from providers, particularly amongst fixed rate accounts.

Vanquis Bank has overhauled its longer term fixed rate bond range and now leads the way for three, four and five years. At the other end of the market, Atom Bank has increased its lead in the one year table, whilst still holding onto the top spot for two years.

Virgin Money followed last week’s eye-catching easy access cash ISA launch with improved rates for its fixed rate cash ISA range, with the market-leading two year option the pick of the bunch. Paragon Bank also made improvements, with its one year option the most impressive.

As always, there are plenty of options on our Best Buy Tables to consider, if you find yourself languishing in a low-paying account and now is the ideal time to take action.

Take a few minutes to review your existing accounts and see what the current rates are, using our free Rate Tracker service.

Then sign up to our Rate Alert emails - if you haven’t done so already - to keep up with any new and interesting accounts throughout the week – just the thing to help you make the switch!

 

Fixed Rate Bonds

Always one of the most popular areas of the savings market and one where lots of competition takes place between providers, this week there were some eye-catching changes affecting our best buy tables.

Firstly, Vanquis Bank made some impressive changes to its longer term fixed rate bonds and now leads the way for three, four and five years.

The provider now pays 2.22% gross/AER for three years, beating a group of providers that includes NS&I into second place.

The new four year fixed rate bond pays 2.40% gross/AER, consolidating its position at the top of the table and on a par with a number of best buy five year bonds.

Finally, the five year fixed rate bond pays 2.45% gross/AER, snatching top position from Secure Trust Bank.

All three accounts can be opened online with a minimum of £1,000.

Elsewhere, Atom Bank continues to corner the market for shorter term fixed rate bonds. Having already achieved pole position in the one and two year tables, the provider improved the rate on its one year offering further, stretching its lead over the competition.

The provider now pays 1.95% gross/AER for one year, alongside its two year account, which pays 2.10% gross/AER.

Accounts can be opened with a minimum of £50 through the provider’s mobile app, available in the Apple App store or Google Play store.

For further information and the full range of options for each term, take a look at our Fixed Rate Bond Best Buy Tables or contact us for more information.

 

Cash ISAs

Continuing to grab the headlines in the cash ISA arena is Virgin Money, following last week’s table-topping easy access cash ISA launch – a position that the provider still holds today.

This week Virgin concentrated on fixed rate cash ISAs, improving its two and three year offerings and moving into our best buy tables as a result.

The two year fixed rate ISA now pays 1.66% tax free/AER and sits proudly at the top of our table, albeit by the smallest of margins. The three year fixed rate ISA pays 1.76% tax free/AER and just sneaks into the top five.

Accounts can either be opened online, in branch or by post, with a minimum of £1, with transfers in from previous ISAs accepted.

Also new this week and now joint top of the pile for those looking for a one year fixed rate cash ISA is Paragon Bank, paying 1.45% tax free/AER.

Accounts can be opened online with a minimum of £500 and transfers in from previous cash ISAs are allowed.

For more information on these accounts and for the full list of alternatives, click here for our Variable Rate Cash ISA and Fixed Rate Cash ISA Best Buy Tables.

 

Easy Access Accounts

For those looking for more access to their funds, there’s not much change to report in the easy access market this week, with a three-way tie at the top of our table between the consistent RCI Bank and the improved Tesco Bank and Post Office.

Newly crowned Best Easy Access Provider in our 2018 Awards, RCI Bank has been a fixture in our best buy table throughout the last year and is currently paying 1.30% gross/AER.

Joining RCI Bank at the top of the table is Tesco Bank and the Post Office, but it is important to note that the 1.30% gross/AER rate on both accounts includes an introductory bonus for the first 12 months, so will need reviewing after a year.

For more information on the current top-paying accounts, please take a look at our Easy Access Best Buy Table.

For more information on any of the accounts above or for other options, call our Bath-based Savings Experts on 0800 011 9705. We’d love to hear from you

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