Rates Rundown: a quiet week in the best buys – football or holidays?

23rd June 2018

It was an unusually quiet week in the savings market, with very few changes affecting our best buy tables. Have we entered a holiday season slowdown or is World Cup fever taking over?

One of the key changes of note came from the Post Office, launching a new market-leading version of its easy access Online Saver – although with a hefty introductory bonus included in the rate, it may not suit everyone.

If the introductory bonus is off-putting, RCI Bank* and Shawbrook Bank still offer the next best rate for those looking for easy access to their money.

Then, in a late move, Secure Trust Bank improved the rates on offer on three of its fixed rate bonds, each now topping the respective table.

Elsewhere, there has been little to shout about, so the rest of this week’s rundown looks at some of the most popular best buy categories – fixed term accounts (fixed rate bonds and Sharia accounts), fixed rate cash ISAs and variable rate cash ISAs and summarises the top-paying accounts in each.

Easy Access Accounts

Perhaps the key change this week came in the easy access best buy table, with a new market-leading rate launched by the Post Office.

The new version of its Online Saver account is paying 1.33% gross/AER and can be opened online with a minimum of £1. The rate includes a 1.08% bonus for the first 12 months, which does mean that you will need to review your options after the first year.

You may prefer to avoid accounts with an introductory bonus or indeed accounts that restrict the number of withdrawals you can make in a year that we have seen more of in recent weeks.

If this is the case, sitting just behind the Post Office are RCI Bank* and Shawbrook Bank, both paying 1.30% gross/AER.

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

Fixed Rate Bonds

Often one of the busiest areas of the market for best buy changes, there was a definite lull in action amongst fixed rate bonds this week - until a late move by Secure Trust Bank.

The provider now pays 2.16% gross/AER for two years - leading the table by the smallest of margins.

The new version of the provider's three year bond pays 2.31% gross/AER, in line with the current incumbent of the top position, RCI Bank*.

The hat-trick of table toppers is completed by Secure Trust Bank's new five year bond paying 2.67% gross/AER, again taking the lead by a tiny 0.01%.

Completing the summary, Atom Bank still leads the way for one year, paying 2.05% - although this account may not suit everyone, as you must apply via the provider’s mobile app.

For those who prefer not to use a mobile app, it's Secure Trust Bank again, paying 1.88% gross/AER.

Finally, we continue to see Vanquis Bank occupying the leading position in our four year table, paying 2.52% gross/AER*.

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

Sharia Accounts 

Sharia accounts continue to offer some of the best returns on the market for those looking for a fixed term account.

Gatehouse Bank pays an expected profit rate of 2.68% gross/AER for five years, 2.33% gross/AER for three years and 2.00% gross/AER for one year – all comparing favourably with rates available on standard fixed rate bonds.

It is also worth noting that Al Rayan Bank offers a 24 month fixed term cash ISA paying 1.80% tax free/AER and a 12 month fixed term cash ISA paying 1.60% tax free/AER – again competitive in today’s market.

Please refer to our Sharia account best buy table for more information and take a look at our recent article, for more on Sharia accounts and how they work.

Fixed Rate Cash ISAs 

The fixed rate cash ISA best buy tables continue to be dominated by two providers this week - Charter Savings Bank and Shawbrook Bank.

Charter Savings Bank leads the way for one year, paying 1.52% tax free/AER, while Shawbrook Bank’s two year cash ISA pays 1.70% tax free/AER.

Shawbrook also holds the leading position in our three year table, paying 1.85% tax free/AER, while Charter’s five year fixed rate cash ISA is paying a table-topping 2.31% tax free/AER.

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

Variable Rate Cash ISAs

Very little change again this week in this area of the market, but there are a couple of key accounts to let you know about - if you hadn’t spotted them already.

The top rate available amongst variable rate cash ISAs comes from Charter Savings Bank, paying 1.40% tax free/AER on its 95 Day Notice Cash ISA.

For those looking for easy access to their cash ISA funds, Al Rayan Bank is paying 1.35% tax free/AER – higher than the equivalent standard easy access account (1.33% gross/AER).

For further detail and more options, please visit our variable rate cash ISA best buy table.

 

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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