Rates Rundown: New faces and several familiar names make the headlines this week

13th April 2018

Perhaps the most eye-catching savings news this week has been the arrival of Tandem to the savings market, launching its first range of savings accounts, with three accounts that each entered our fixed rate bond best buy tables.

Tandem Bank

Improving its five year fixed rate bond was Vanquis Bank* and, as a result, the provider is now joint market-leader in this category.

And now leading the way amongst both one year* and two year* bonds is one of the newer names in the savings market, Wyelands Bank.

Earlier in the week, Shawbrook Bank launched a new market-leading five year fixed rate cash ISA, aiming to pick up those savers that are looking to use their ISA allowance early in the tax year.

Elsewhere in the fixed rate cash ISA market, Kent Reliance launched new versions of its one and two year ISAs, both significant improvements on the previous offerings and taking the provider to the top of the respective tables.

Meanwhile, there has been little change amongst variable rate cash ISAs, with Nationwide still topping the table.

There has also been little to report in our easy access account best buy table – with the consistent RCI Bank* leading the way.

If you enjoy reading our Rates Rundown each week, make sure you also sign up to our Rate Alert emails, for a regular update on the latest best buy accounts, as they hit the market.

Fixed Rate Bonds

There was a new entrant to the savings market in the form of Tandem, which launched its first range of savings accounts since its acquisition of Harrods Bank at the start of 2018.

The new accounts launched are a one year fixed rate bond paying 1.80% gross/AER and a two year bond at 2.10% gross/AER, which both go straight into second position in the respective tables.

Its new three year fixed rate bond paying 2.30% gross/AER is also a best buy, beaten only by RCI Bank, which pays 2.31% gross/AER*.

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

Improving its five year fixed rate bond this week was Vanquis Bank – now paying 2.65% gross/AER* and joining Secure Trust Bank at the top of the table.

The account can be opened online, with a minimum of £1,000 and also offers a monthly interest option for those looking for a regular income from their savings.

Finally, in a late change, Wyelands Bank grabbed the headlines amongst shorter term bonds, with new market-leading rates of 1.85% gross/AER for one year* and 2.15% gross/AER for two years*.

Accounts can be opened online, with a minimum of £5,000 and both offer annual or monthly interest options.

For further information or to view other options that are currently available, please refer to our fixed rate bond best buy tables.

Fixed Rate Cash ISAs

As the new tax year is only just over a week old, it is little surprise to see more action amongst cash ISAs, with the fixed rate variety making the headlines this week.

Earlier in the week, Shawbrook Bank took the lead in the five year table, with an improved offering paying 2.30% tax free/AER.

You can apply for the account online, with a minimum of £5,000 and transfers in from previous ISAs are accepted.

Amongst shorter-term fixed rate cash ISAs, Kent Reliance made significant improvements to its one and two year options and now sits at the top of both best buy tables.

The rates have gone up by 0.43% to 1.48% tax free/AER for one year and by 0.53% to 1.68% tax free/AER for two years – a big step in the right direction!

Accounts can be opened online, in branch or by post, with a minimum of £1,000. Transfers in from previous ISAs are accepted into the accounts.

To view the full range and review other top rates currently available, please visit our fixed rate cash ISA best buy tables.

Variable Rate Cash ISAs

Nationwide still rules the roost in this area of the market, with few changes to report this week.

The Single Access ISA pays 1.30% tax free/AER (or 1.40% for existing members) – although, you are limited to just one withdrawal a year and so it may not be suitable for everyone.

The next best easy access option comes from Shawbrook Bank – it pays 1.25% tax free/AER and can be opened online, with a minimum of £1,000.

If you would like more information, please take a look at our variable rate cash ISA best buy table.

Easy Access Accounts

Following ICICI Bank dropping out of our best buy table (for more on this, see this week’s Ask Anna), the consistent Freedom Savings Account* from RCI Bank re-takes the lead, still paying 1.30% gross/AER.

Accounts can be opened online, with a minimum of £100.

For more information and alternatives, 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.

*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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