Best buy rates have continued to fall over the last couple of weeks, however the negative activity has slowed considerably as markets accept the Bank of England’s move. There have even been some new additions to the market, keeping the reductions less painful.
But we are still expecting more base rate cuts in the coming months, so make sure you monitor your savings closely and switch when you need to.
RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (13/09/2024). All up to date rates can be found on our Best Buy tables.
It’s been quiet over the last couple of weeks in the Easy Access Best Buy table, but what activity there has been, has been mixed. The good news first! We’ve actually seen a couple of new additions into the table. First, Chip increased the rate on the app-only Easy Access Saver, from 4.07% AER, to 4.84%, knocking Monument out of the table. But the next move from the West Brom Building Society pushed Chip out again! The rate on the recently launched Four Access Saver (Issue 1) was increased from 4.81% AER, to 4.90% AER, putting it into second place behind the Ulster Bank Loyalty Saver.
Talking about Ulster Bank, onto the less positive news. Ulster Bank have announced that they will be cutting the rate on this account to 4.75% on 14th October. As things stand at the moment, this means the account will drop out of the table completely. We have made the decision to keep the account in the table however, as any of the easy access account rates could be cut at any time, without letting us know in advance. So we don’t want to penalise those providers who do give us advance warning!
There’s mixed news in the fixed term bond tables too!
1 Year
We include a couple of 6-month bonds in this table, when they are paying higher rates, and we’ve seen a new 6-month bond go straight to the top this week. GB Bank, via Prosper launched a bond paying 5.23%. At the same time, the previous market leader from Mizrahi Tefahot via Flagstone, paying 5.20% was withdrawn. However, Mizrahi Tefahot is still offering the top 1-year bond of 5%, this time via Raisin, since Union Bank of India withdrew its 1-year bond paying 5.05%, replacing it with a new issue paying a lower rate of 4.95%.
And with the Access Bank Sensible Savings 1-year bond paying 5% being withdrawn too, Close Brothers has taken up the final spot paying 4.92%. So it’s a sign of the times that we no longer have five bonds in this table paying 5% or more.
Remember that Raisin UK is still offering a welcome bonus for those who have not yet joined up to the platform. Those opening and funding an account with at least £10,000 for the first time with Raisin UK, will receive a £100 bonus payment which can elevate an already competitive rate into a market leading one.
If you were to deposit £10,000 into the 1-Year bond with the Mizrahi Tefahot Bank paying 5% AER*, the £100 bonus could push the effective rate earned up to 6% for the term, pushing what is already market leading to head and shoulders above the rest. Of course, the more you deposit, the more this bonus effect is diluted – for example if you were to deposit £20,000, then the effective rate including the bonus would be 5.50% AER – but it’s still good to have that little extra.
In order to receive the bonus, savers must enter the promo code 'OFFER100' whilst signing up for a new Raisin UK account clicking here or using the links in our best buy tables and they must do so before midday on the 30th September 2024. Once your Raisin UK Transaction Account has become active, you must apply for and open a savings account within the platform, and fund the account with a minimum of £10,000 by 11:59pm on 15th October 2024.
2 Years
The news is not great in the 2-year table. The top rate available is actually an 18-month bond, as this term continues to be popular, but it’s now Union Bank of India paying 4.75% because Hampshire Trust Bank has withdrawn its 18-month bond which was paying 4.78% AER.
And whilst the top 2-year bond is still Ziraat Bank via Raisin, the rate on offer has been cut from 4.79% to 4.72% AER.
For those who’d prefer not to open an account on a cash platform, the next best 2-year term is 4.70% with RCI Bank.
3 Years
Whilst there have been some new launches in the 3-year table, overall I’m afraid the trajectory is downwards.
The top rate of 4.55% from Cynergy was the first to go which left UBL, either via Raisin or direct, in the top spot paying 4.51% AER.
The most active provider has been Hodge Bank which launched a new mid table bond paying 4.50% AER – but this was replaced just a few days later with the current market leading rate of 4.52%, pipping UBL by the smallest of margins.
So, overall unfortunately the average of the top five has reduced from 4.53% a couple of weeks ago, to 4.48% as we end the week.
5 Years
In the 5-year table we’ve seen some more positive moves, although the average of the top five has remained at 4.32%. That said the top rate on offer has increased slightly a couple of times in the last two weeks. Firstly, Birmingham Bank increased the rate it is offering from 4.33% to 4.36%. But once again Hodge Bank has risen to the top, pipping Birmingham Bank by just 0.01% with a new rate of 4.37%, up from its previous offering of 4.32%. This is great news, especially when we are expecting to see rates continue to fall over the next few months. So, locking in at a lower rate for longer could end up being a shrewd move!
1 Year
As with the fixed rate bond tables, there has been good and bad news in the ISA tables over the last couple of weeks.
On the bad news side Virgin Money’s 1 Year Exclusive ISA paying 4.75% has been replaced with a new issue paying 4.51%, meaning that it has dropped off the best buy table completely.
We also saw Castle Trust withdraw its 4.70% ISA, replacing it with a new issue paying 4.63% - so still competitive, but no longer the top ISA available to all. Cynergy was the next to go, as its 4.66% ISA had moved into 2nd place behind the abovementioned Virgin ISA before it was withdrawn. Kent Reliance was the next to go, as it had moved up too with an ISA paying 4.63%.
So, it was a relief when United Trust Bank relaunched a 1-year ISA paying 4.65% - the same rate as its previous issue – so bucking the general downward trend.
Kent Reliance also released a new issue 1-year ISA paying the same as it had been – 4.63%, and Secure Trust Bank found its way into mid-table position paying 4.64%. United Trust Bank’s ISA was withdrawn as we ended the week, giving Secure Trust Bank an opportunity for first place, however it wasn’t to be as Charter Savings Bank took the top spot with a new ISA offering 4.67%.
2 Years
Overall, the top rates have fallen in this table too. We lost the previous market leading ISA from Cynergy Bank paying 4.57% early in September, which shunted United Trust Bank and the Loughborough Building Society to the top with their offerings of 4.45% AER.
As we end the week, Loughborough is the last man standing, as United Trust Bank withdrew its ISA. This leaves Hodge Bank in 2nd place following the new ISA it launched earlier in the week, paying 4.42%.
UBL UK and Zopa are both holding fast in 3rd and 4th place paying 4.41% and 4.40% respectively, leaving Bath Building Society in the final spot, also paying 4.40%.
3 Years
It’s been an interesting time in the 3-year ISA table. There were some encouraging increases, but also a couple of withdrawals which leaves the top rate available still at 4.35% with Cynergy Bank, whilst the average of the top five remains at 4.28%.
The first positive movement was from Hodge Bank which launched a new ISA paying 4.21% putting it into 5th place, shoving Secure Trust Bank out. But Hodge had loftier ambitions and a couple of days later launched a new ISA, this time paying 4.31% putting it into joint 2nd place with Beehive and UBL UK. This pushed the average of the top five up to 4.31% from 4.28%.
Unfortunately, Beehive then withdrew its ISA – but with the others holding fast both the top rate on offer and in fact the average of the top five is the same as two weeks ago!
Let’s see what the coming weeks bring – overall the last couple of weeks have seen the best rates falling, but there has been some competition keeping our spirits up.
5 Years
There’s been similar activity in the 5-year table and although the top rate on offer is still 4.10% AER with UBL UK, the average of the top five has increased ever so slightly to 4.04% from 4.03% two weeks ago.
Unfortunately, the first move was a rate reduction from Close Brothers, who withdrew its 4% ISA, elevating Secure Trust Bank into 5th place paying 3.95%.
But Hodge Bank made the first of two moves, firstly offering an ISA paying 4%, but later increasing its offering to 4.05% AER.
In the meantime, United Trust Bank upped what it was offering to 4.10% taking it up to joint 1st place, although sadly the United Trust ISA was not around for long, withdrawn towards the end of the week, leaving Hinckley & Rugby Building Society and Hodge Bank in joint 2nd place paying 4.05% thus pushing the average of the top five up from 4.03% to 4.04%!
Whilst the last couple of weeks have continued to see rates falling overall, there is still some competition alive and there are still some pretty good rates to be found – especially bearing in mind the fact that inflation has fallen to near the 2% target – so you can find plenty of inflation busting accounts.
We’ll be back with another update in two weeks. In the meantime, remember to keep an eye on the best buy tables.
*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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