Rates Rundown: Some providers announce changes to come… while others have already increased rates…

11th November 2017

Although some providers have announced that they will be passing the Bank of England base rate rise on to their customers, either in part or in full, most will not be doing so until the start of next month.

In the meantime, we haven’t seen the plethora of increased rates hit our best buy tables that we would’ve hoped for, but we have seen the continuation of the upward trend that we have seen since the start of the year.

As we have grown accustomed to, these increases can be seen in the fixed rate bond and fixed rate cash ISA markets, along with a new market-leader in our easy access account table.

 

Fixed Rate Bonds

Atom Bank has launched new versions of its 1, 3 and 5 year fixed rate bonds.

This sees the innovative provider leading the way in multiple tables, while holding second position in the 5 year table.

The new version of its 1 Year Fixed Saver pays 1.95% gross/AER, while the new 3 year Fixed Saver pays 2.25% gross/AER, with the 5 year account paying 2.45% gross/AER.

Meanwhile its unchanged 2 Year Fixed Saver continues to lead the way, paying 2.05% gross/AER

Although offering market-leading rates, it is important to be aware that the accounts can only be applied for and managed via the provider’s app (available from the Apple and Google play stores).

For those that this is not suitable for or those who do not feel comfortable to conduct financial transactions this way, alternatives can be found in our fixed rate bond best buy tables.

Vanquis Bank has also increased rates on its 4 Year Fixed Rate Bond, pushing the provider up to the top spot, paying 2.40% gross/AER.

Meanwhile, the increased rate on its 5 year product matches the rate offered by Atom Bank and Paragon Bank (2.45% gross/AER), the trio holding joint second position.

 

Fixed Rate ISAs

There have also been improvements made in the fixed rate cash ISA market, with Yorkshire Building Society launching new versions of its range of fixed rate cash ISAs.

The provider’s new versions of its 2 and 3 year fixed rate cash ISAs increased by up to 0.15%.

Although a fairly substantial increase, the provider does not climb higher in our tables, but maintains its position of third in both tables.

We continue to see Charter Savings Bank and Coventry Building Society lead the way for these terms, paying 1.72% tax free/AER and 2.00% tax free/AER respectively.

 

Easy Access Accounts

Perhaps the biggest news of the week is a new market-leader in the easy access best buy table - Paragon Bank taking the top spot by the smallest of margins.

The provider’s new Limited Edition Easy Access (Issue 4) claims the lead, paying 1.31% gross/AER.

This account just edges to the top, squeezing out RCI Bank and Birmingham Midshires, which are both paying 1.30% gross/AER.

For more information on these accounts and other leading rates, please refer to 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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