Rates Rundown: As snow and blizzards hit the UK, it’s more of a sprinkling of new best buys…

03rd March 2018

This week we have seen a sprinkling of new best buys enter our tables, rather than a blizzard – in stark contrast to the adverse weather conditions hitting many parts of the country.

Perhaps the biggest news of the week has been the launch of Nationwide’s market-leading variable rate cash ISA, an unusual move for one of the savings market’s bigger names.

We have also seen improvements from Milestone Savings, taking two positions in our Sharia Account Best Buy Table as a result.

In the fixed rate bond market, Paragon Bank was again active, improving its two and five year offerings and moving up our tables as a result. Amongst three and four year bonds, Masthaven Bank was the provider moving up the rankings this week. Then in a late move, Ikano Bank moved to the summit of a number of our tables - a late flurry in a week of them.

There has also been some movement in our fixed rate cash ISA best buy tables, in keeping with the activity we have seen over the last few weeks. Tesco Bank is the latest to make an improvement to its one year fixed rate cash ISA and Furness Building Society entered the top five for the longer five year term.

Elsewhere, the easy access market has remained static, much like some of the traffic over the last few days, with the consistent RCI Bank still leading the way in our best buy table. Don’t forget to sign up to our Rate Alert emails, to keep up to date with the latest best buy accounts as they hit the market.


Variable Rate Cash ISAs

This week, Nationwide became the first of the bigger high street names to make a significant move in the cash ISA market, as we approach the end of the tax year, with the launch of a new market leading easy access cash ISA.

The Single Access ISA pays 1.30% tax free/AER, with a loyalty version available to existing customers of at least one year at 1.40% tax free/AER. 

As the name suggests, both accounts allow one withdrawal per year, with further withdrawals resulting in the rate decreasing to 0.50% for the remainder of that year.

While undoubtedly a good rate in today’s market, the withdrawal restriction may prove unsuitable for some savers. If this is the case, there are alternatives available, please refer to our variable rate cash ISA best buy table for more information.


Sharia Accounts

Milestone Savings grabbed the headlines in our Sharia account best buy table, launching a new range of fixed term deposits. Most striking is the provider's new three and five year products, paying 2.21% gross/AER* and 2.45% gross/AER* respectively, both taking the leading positions as a result.

For more on this provider, see this week’s Provider Focus article.


Fixed Rate Bonds

Paragon Bank made improvements to its two and five year bonds and now sits in joint second and joint fourth place in the respective tables.

The latest versions pay 2.09% gross/AER for two years and 2.47% gross/AER for five years.

Also improving rates this week was Masthaven Bank, with a new three year bond paying 2.21% gross/AER* and claiming third position. While the four year account from Masthaven Bank pays 2.26% gross/AER*, also claiming third spot.

Then in the final move of the week, Ikano Bank surged to the top of a number of our tables, albeit by the smallest of margins.

The new two year bond pays 2.10% gross/AER, the three year bond 2.26% gross/AER and the five year bond is 2.52% gross/AER.

If you would like any further details or to view other options currently available, please refer to our fixed rate bond best buy tables.


Fixed Rate Cash ISAs

As we start the final approach to the end of the tax year, it is perhaps unsurprising to see further activity in the fixed rate cash ISA market.

The pick of the changes this week came from Tesco Bank and Furness Building Society.

Tesco Bank now pays 1.45% tax free/AER on its one year fixed rate cash ISA, slotting into joint second position in our best buy table.

Amongst the longer terms, the key change was from Furness Building Society, launching a new five year fixed rate cash ISA paying 2.20% gross/AER and sitting in joint third position in our table. To view other top rates currently available, please follow the link to our fixed rate cash ISA best buy tables.


Easy Access Accounts

Whilst we haven’t still seen a huge number of changes in this area of the market over the last few weeks, there are still competitive rates to be had.

The consistent RCI Bank remains in command of the table, paying 1.30% gross/AER on its Freedom Savings Account. For more information on this account and other options, please take a look at our easy access best buy table.


For more information on any of the accounts above or for other options, call our Bath-based Savings Experts on 0800 011 9705. We’d love to hear from you.

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