🔔 Rates Rundown - savings rates have been improving, will this continue following the base rate rise to 1%?

Author: Anna Bowes
06th May 2022

As Spring is in full flight and we head towards the Summer months, we have seen battles in our best buy tables heating up and a ray of sunshine for savers this week as the Bank of England Base Rate increased to 1%.

RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (06/05/2022). All up-to-date rates can be found on our Best Buy tables.

Easy Access

The leading spot remains firmly in the grasp of Chase, paying 1.50% AER on its Chase Saver Account, although the rest of the pack is catching up. For those of you who are unfamiliar with the Chase account, you are required to hold a current account with the provider in order to open the account and receive the market-leading rate. But this doesn’t mean you have to switch your main current account, you only have to hold one with the provider.

Behind Chase, there’s been a lot of activity. We have seen a busy Zopa. The provider was the first to challenge Chase by increasing its offering for new and existing customers, to 1.15% which propelled the Smart Saver account into the second spot in our table. However, Cynergy Bank was quick to push Zopa aside paying 1.20% on Issue 50 of its online easy access product. 

Zopa fought back though by increasing the rate on Smart Saver again, this time matching the rate offered by Cynergy Bank, seeing both providers paying 1.20% and holding second spot jointly.

This was short-lived though, as Aldermore made a return to our tables ousting the pair and taking second spot paying 1.25%.

And we aren't done there, Aldermore too was outdone. On this occasion Gatehouse Bank rose through the ranks with its latest offering of 1.30% on its Easy Access Account. And right at the last minute, Atom Bank increased the rate on its Instant Saver to take third position paying 1.25% AER

So the week finished as follows; Chase (1.50%) extending its stronghold atop our table, Gatehouse Bank next best (1.30%), Atom and Aldermore in the middle of the pack (1.25%), with Zopa, our original challenger, clinging onto fifth spot (1.20%).

Notice Accounts

We have seen several providers battling it out in our Notice Best Buy table over the last two weeks. 

This first noteworthy move came from OakNorth; its latest 120 day product took pole position, paying 1.53%, while its 90 day offering at only 0.01% behind (1.52%), claimed second spot. 

Oxbury matched both of these rates on its comparative 120 and 90 day products resulting in the two providers holding joint first and second spot in our tables.

But PCF Bank, launched into the leading positon with Issue 8 of its 180 day notice product, paying 1.63%. Oxbury Bank hit back, with an increased offering of 1.58% on Issue 8 of its 120 day product.

PCF Bank claimed joint third spot in our best buy table with its 100 day notice product, paying 1.53% AER, while OakNorth remains on our table in the final spot with its best paying 90 day notice account still paying 1.52%.

Fixed Rate Bonds

We have seen rates increase across each of our fixed rate bond tables over the last couple of weeks. These increases include the highest 1-year fixed rate we have seen in almost four years, and highest 2-year rate in eight years!

First looking at our 1-year table, we saw Investec, Oxbury, Close Brothers and Kent Reliance all match the market-leading rate (2.05%) offered Charter Savings Bank – making a five-way tie for the leading spot.

The top rate was soon changed as Allica Bank via the Flagstone platform. came to the fore with a bond offering 2.10%, which in turn was surpassed by the offering from Jordan International Bank (again available via the Flagstone platform) paying 2.15%. 

Oxbury made a dash for second place with its Issue 9 one year fixed rate product paying 2.13% AER but in a final play of the week, Shawbrook Bank launched Issue 76 of its one year fixed rate product, matching market-leading rate of 2.15%. 

This is the highest one year fixed rate bond rate we have seen since August 2018!

Looking ahead to our two year table, and we again have the highest rate we have seen in quite some time. The catalyst may have been Atom Bank who upped the ante by launching a bond paying 2.40%. But this was quickly usurped by Jordan International Bank which launched a bond paying 2.50% AER, exclusively via the Flagstone platform

And as we approached the end to the week we saw Shawbrook Bank swoop in to claim share of the lead also paying 2.50% on Issue 76. Both providers offering the highest rate we have seen in eight years! Another great sign for savers.

Across now to our three year table and the increases continue.

Oxbury and United Trust Bank challenged Charter Savings Bank also paying 2.50% AER – so the trio were united at the top of the table, but were soon nudged from the lead once again by Jordan International Bank via the Flagstone platform, with an account paying 2.55% AER.

However, PCF Bank upped the ante again, its latest three year product pays 2.60% which was later matched by Shawbrook Bank - the two providers leading the way both offering the top rate seen in this table for three years.

Finally for the fixed rate bond arena, the five year offerings. We continue the theme of the top rates seen for quite some time. It began with United Trust Bank hitting the top, paying 2.60%, a rate that was then matched by both PCF Bank and Oxbury.

Not content with a joint leading spot in our tables, PCF Bank rose to take the leading spot on its own, offering 2.75% on Issue 29 of its five year fixed rate product.

However, in the last move to note, we again saw Shawbrook Bank making its move, this time topping the table with a rate of 2.80%, this is the highest rate we have seen in our five year fixed rate bond table since early 2019!

So, with leading rates higher than we have seen for many years across the board it is certainly looking like things are heading in the right direction for savers, and with the announcement of the base rate increase on Thursday, we hope to see this upward trend continue.

Fixed Rate ISAs

The fixed rate cash ISA tables have been far quieter than the fixed rate bond counterparts over the last fortnight, but the better best buys available continues.

In our one year table, United Bank UK was the first provider to claim the leading spot paying 1.50%, taking over from Aldermore’s ISA paying 1.46% AER.

But the real headliner came in the form of Shawbrook Bank. Late this week the provider launched Issue 60 of its 1 Year Fixed Rate Cash ISA Bond paying 1.60% storming to the top.

Hampshire Trust Bank made an early showing atop our two year table, paying 1.91%, and again we saw United Bank UK head up to second spot this time paying 1.90%. But, once again Shawbrook Bank again stole the show, this time offering 2.00%.

We saw the same show in our three year table, though this time there was a slight twist at the end. The opening act saw Hampshire Trust Bank head to the leading spot paying 2.05%. Meanwhile, United Bank UK came in with a strong offering at 2.00%, matching the rate from Skipton Building Society with the duo sitting in joint second position.

Not to be beaten, Shawbrook Bank came on the scene late in the week, matching the market-leading rate of 2.05%. But as the week ended Castle Trust Bank swooped in to take the top spot paying 2.11% AER – looking like it means business to stay in first place..

Finally, across to our five year table. Once again, the headliner is Shawbrook Bank. Its latest offering of 2.15%, which was also matched by Secure Trust Bank, so the duo claim the leading spot with joint honours as we head into the weekend. Furness Building Society came in strong with a rate of 2.10% matching Skipton Building Society for joint second place. And United Trust Bank has joined second place two, pushing the average rate of the top five to 2.12%, up from 1.97% two weeks ago.

It's encouraging to see best buy rates have been improving - let's hope there is more to come following the BoE base rate increase on 5th May. Keep a close eye on our Best Buy tables for up to the minute information.