Best buy rates have continued to fall over the last couple of weeks, as you’d expect, however activity has slowed considerably as markets accept the Bank of England’s move.
But we are 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 (30/08/2024). All up to date rates can be found
on our Best Buy tables.
Unfortunately, the top rates in this table have continued to tumble over the last couple of weeks, bringing the average of the top five to 4.82% from 4.88% a couple of weeks ago.
The top rate available has dropped below 5% sadly – a sign of the times. Both GB Bank via the Raisin cash platform and the Cahoot Simple Saver (Issue 4) are paying 4.85% AER, taking a joint position at the top of the table.
That doesn’t necessarily mean that the rate on any recently withdrawn accounts have dropped too, but it’s possible. So, remember to keep an eye on the rates you are earning on existing accounts, as well as checking out the top live accounts available.
1 Year
Although slower, rates have continued to fall in this table over the last couple of weeks. Even the Union Bank of India rate of 5.25% that had been available since the beginning of August, has now been withdrawn and replaced with a lower paying account paying 5.05%, matching the Mizrahi Tefahot Bank bond which is available via the Raisin platform.
Raisin UK has recently reinstated 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 5.05% AER*, the £100 bonus could push the effective rate earned up to 6.05% 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 5.55% 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
Sensible Savings and Union Bank of India have also withdrawn from the top two spots in the 2-year table, removing their bonds paying 4.90% and 4.80% respectively. Whilst Sensible Savings has exited the table completely, Union Bank of India launched a new bond paying 4.75%, matching a new bond launched by GB Bank via Raisin UK.
This leaves the Ziraat Bank bond, also via Raisin UK in the top spot, paying 4.79% AER.
There’s been little other activity in this table over the last couple of weeks.
Quite frankly Raisin UK is keeping the competition alive at the moment, but for those who’d prefer not to open an account on the platform, other than the Union Bank of India Bond, the next best is a new increased bond from Cynergy Bank paying 4.71% AER.
3 Years
The withdrawals have continued into the 3-year table unfortunately, although there have also been some new additions to the table, not just those bonds that have been pulled up into the top five because of the competition falling.
The top rates of 4.70% and 4.63% from Sensible Savings and UBL respectively were the first to be withdrawn but GB Bank, via Raisin UK launched a new bond paying 4.60%, and UBL launched a new bond – this time exclusively via Raisin, paying 4.51% - both staying ahead of a raft of bonds all paying 4.50%
Hampshire Trust Bank was the next to launch a higher paying account, matching UBL paying 4.51% AER.
And finally, as we ended the week, Cynergy Bank has launched a bond paying 4.55% moving into 2nd place.
5 Years
In the 5-year table, we’ve actually seen more increases than decreases which has pushed up the average of the top five from 4.29% to 4.32%. And although the top rate on offer has remained at 4.35% - Cynergy Bank is now offering this rate as well as State Bank of India. 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!
It’s finally gone!! The Virgin Money 1 Year Exclusive ISA paying 5.05% has been replaced with a new issue paying 4.75% - although it remains at the top of the table!
Virgin Money wasn’t the only casualty unfortunately. Kent Reliance and UBL both withdrew their 4.75% bonds (allowing Virgin to keep the top spot on its own) and United Trust Bank’s 4.70% ISA was the next to go.
Castle Trust however bucked the trend and launched a new ISA paying 4.70% putting it into 2nd place ahead of United Trust Bank’s new issue of 4.65% AER. As we ended the week, United Trust Bank withdrew this bond, but Cynergy Bank launched a new ISA paying 4.66%, taking 3rd place.
So, there’s been positive and negative activity over the last couple of weeks.
2 Years
Overall, the top rates have fallen in this table too – we lost the previous market leading ISA from UBL paying 4.71%, as it launched a new lower paying ISA of 4.56%. However, this kept it at the top – along with a new ISA from Beehive Money which was also offering 4.56% AER
Unfortunately, both of these accounts have subsequently been withdrawn – Beehive has disappeared from the top five whilst UBL is still in there but in 4th place paying 4.41%.
United Trust Bank was another casualty – its 4.55% ISA was withdrawn to be replaced by a new ISA paying 4.45% but Cynergy Bank bucked the trend by withdrawing its ISA paying 4.45%, placing it with a market leading account paying 4.57% taking the top spot.
As we end the week, Close Brothers is sitting in 2nd place having held fast paying 4.55% as others were cutting.
3 Years
Cynergy Bank has been the hero of the 3-year table too – replacing UBL in the top spot although with a slightly lower rate of 4.35% - the UBL account that was withdrawn was previously paying 4.51% AER but its new offering is 4.31%.
This rate is in joint 2nd place however, along with a new ISA launched by Beehive.
Overall, the average of the top five has dropped slightly from 4.32% to 4.30% but at least there have been some positive launches to combat some of the damage from the withdrawals that have happened.
5 Years
It’s been quieter in the 5-year ISA table but once again the top rate has fallen. The leading provider is still UBL but the top rate on offer has fallen from 4.26% to 4.10%.
The only other movement of note is from Beehive, which launched a new ISA paying 4.06%, popping it into 2nd place, keeping the average at 4.05%, just a minimal fall from 4.06% two weeks ago.
Whilst the last couple of weeks have seen less activity than the two weeks before, unfortunately rates overall are still falling – just less rapidly.
But 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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