This week we have seen further changes to the easy access market, along with new market-leading fixed rate bonds, and cash ISAs.
Following RCI Bank reclaiming the reign of the easy access market, Birmingham Midshires has struck back, increasing the rate on its Instant Saver Account for new and existing customers – joining RCI Bank at the top.
We have also seen changes amidst the fixed rate cash ISA market, with Coventry Building Society launching a new 3 year fixed rate cash ISA, taking the top spot for the term.
Charter Savings Bank has also introduced a new version of its 2 Year Fixed Rate Cash ISA, again with a market-leading rate in place, topping our table.
Across to the fixed rate bond domain, Ikano Bank launched a range of fixed rate bonds, with multiple market-leading rates, while Hodge Bank launched a new range with its one year bond breaking into our best buy tables.
Easy Access Accounts
It is important to be aware that, after the first 12 months the Birmingham Midshires Internet Saver will revert to the Standard Saver Internet Saver, paying just 0.05%.
So you’ll need to make a note to move it, or use our Rate Tracker to remind you.
This is a bonus in disguise and it is interesting to note; three of the top five easy access accounts include bonuses as part of the rate. See our Beware of the Tricks of the Trade article for more information on this.
Fixed Rate Bonds
Ikano Bank launched a new range of fixed rate bonds, pipping the rates offered by competitors by the smallest of margins but now leading the way in multiple best buy tables.
The Fixed 3 Year Saver Account leads our best buy table paying 2.21% gross/AER, just edging out NS&I (paying 2.20% gross/AER).
Ikano Bank, also leads our four and five year tables, paying 2.36% gross/AER and 2.46% gross/AER respectively.
If we glance towards the shorter terms, Hodge Bank’s new 1 year fixed rate bond, paying 1.80% gross/AER has joined Atom Bank in second position in our table.
Both providers sit behind the market-leading rate from The Access Bank UK, paying 1.85% gross/AER on its Sensible Savings – 1 Year Fixed Rate Bond.
Fixed Rate Cash ISAs
Amongst fixed rate cash ISAs, Coventry Building Society released its new Poppy Fixed ISA (1) 30.11.2020, paying 2.00% tax free/AER on balances £1 plus.
This account now offers the top rate available on a 3 year fixed rate cash ISA, whilst also providing a place for previously accrued ISA funds and giving the option of monthly interest payments.
It is however still beaten by the Yorkshire Bank Cash ISA Fixed Rate Bond 43, which has a fixed maturity date of 29th January 2021, so a little longer in the term, but pays 2.20% tax free/AER.
Finally, Charter Savings Bank launched a new version of its 2 Year Fixed Rate Cash ISA, paying 1.72% tax free/AER.
This sees the provider edge out Virgin Money by just 0.01% and take the crown.
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.