Rates Rundown: Savers can smile as the sun shines as multiple best buy accounts are launched

21st April 2018

The competition in the fixed rate market mirrored the weather this week, with things heating up on both fronts. In contrast, the variable rate market seemingly took time to relax and bask in the sun.

PCF Bank

We saw improved rates from PCF Bank across its longer-term fixed rate bonds, while Secure Trust Bank made a return to the shorter one and two year tables.

Meanwhile, United Trust Bank made a play for the top spot in our one year table with the launch of a new version of its one year bond.

Although a number of providers added fuel to the fire with new best buy accounts entering our fixed rate bond tables, the big headline of the week came from United Bank UK, which launched a market-leading five year fixed rate cash ISA.

It’s also interesting to note that this is the first time in over four years (March 2014), that the top rate on a five year fixed rate bond and fixed rate cash ISA have been on a par.

Fascinatingly, United Bank UK offers the top rate in both categories - though Vanquis Bank* and Secure Trust Bank also match the rate on their respective five year fixed rate bonds.

And finally, ONS (Office of National Statistics) announced that CPI inflation has dropped to its lowest point in 12 months and now stands at 2.50%.

Subsequently, a handful of best buy accounts, including a number of those launched this week, now make it possible for savers to beat CPI inflation.

Fixed Rate Cash ISAs

The new market-leading five year fixed rate cash ISA from United Bank UK is the highest-paying account of its kind that we have seen since February 2015.

The new version of the account pays 2.65% tax free/AER and has taken the leading spot by quite some margin.

The account, which can be open in branch or by post, sits 0.35% above its closest competitor - Shawbrook Bank (paying 2.30% tax free/AER).

Amongst the shorter one and two year terms we continue to see Kent Reliance leading the way paying 1.48% tax free/AER and 1.68% tax free/AER respectively.

To view other leading rates across a range of terms, please visit our fixed rate cash ISA best buy tables.

Fixed Rate Bonds

The second of United Bank UK’s impressive new launches this week was its five year fixed term deposit account.

The new version now sits alongside Vanquis Bank* and Secure Trust Bank, each paying the leading rate of 2.65% gross/AER.

In addition, we saw PCF Bank launch a range of new longer-term fixed rate bonds, with the latest version of its five year account paying 2.60% gross/AER, climbing up to second position.

The provider also launched a new four year product, pushing them higher up our table, again reaching second position and this time paying 2.40% gross/AER.

This move was later trumped by Vanquis Bank’s* new version of its own four year account, paying an inflation beating 2.52% gross/AER and extending its lead for the term.

Elsewhere, Secure Trust returned to our one and two year tables, paying 1.83% gross/AER and 2.10% gross/AER, taking second position in our respective tables.

Finally, United Trust Bank launched a new version of its one year bond, joining Wyelands Bank* at the top of our table, both paying 1.85% gross/AER.

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

Easy Access Accounts

As has been the case over the last couple of months, we have seen little change at the top of our easy access best buy table.

However, while several providers have come and gone from our best buy table, the unfailing RCI Bank* remains in pole position, paying 1.30% gross/AER.

Check out our easy access best buy table for other leading rates currently available.

Variable Rate Cash ISAs

Another area seeing little change in recent weeks, with Nationwide continuing to lead the way - paying 1.30% tax free/AER on its Single Access ISA.

For those looking for more access to their ISA funds, Shawbrook Bank is next in line, paying 1.25% tax free/AER on an easy access ISA without withdrawal restrictions.

If you would like more information on these accounts or to view other options, please refer to our variable rate cash ISA best buy table.

For those avid savers that enjoy reading our weekly Rates Rundown, be sure to sign up to our Rate Alert emails to receive regular updates on new accounts as they hit the market.

*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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