🔔 Rates Rundown - will savers be jubilant this Jubilee?

Author: Anna Bowes
01st June 2022

As we enjoy the holiday weekend, rates are continuing to rise. Whilst we can't beat inflation, choosing the best rates can help to mitigate it.


RATES ARE CORRECT AS AT THE TIME OF PUBLICATION (01/06/2022). All up-to-date rates can be found on our Best Buy tables.

Easy Access

This week we saw Cynergy Bank return to our best buy table with Issue 51 of its Online Easy Access account, paying 1.32%, which staked claim to the second spot. However a last minute addition from Yorkshire Building Society knocked Cynergy from that place with the introduction of its Internet Saver Plus Issue 11 paying 1.33% AER on balances of £10,000 to £49,999. An even higher rate of 1.38% can be earned by those with more than £50,000 - but if the balance drops below £10,000, so too does the rate - to 1.10% AER

This little battle is good news but both of these accounts are beaten be the ever-present Chase Saver Account which is still paying 1.50% AER. It seems no-one wants to challenge Chase at the moment.

Al Rayan Bank holds the forth spot, paying 1.31% and Ford Money has also returned with its Flexible Saver paying 1.30% AER taking last place - a rate rise for both new and existing customers.

Notice Accounts

Oxbury was knocked of its perch this week by DF Capital who has increased the rate on its 120-Day Notice account, leaping straight to the top of the table, offering 1.70% AER. Not only is this a higher rate, but also a lower notice period than the previous leaders, Oxbury Bank with its 180 Day Notice Account and United Trust Bank with its 200 day notice account - both paying 1.65% AER.  

Also returning to our notice table this week was Paragon, its 120 day notice product clinging to the fifth spot paying 1.61%.

Off the table but only by the smallest of margins is DF Capital's 90-day notice account paying 1.60%, for those who'd prefer a slightly shorter notice period.

Fixed Rate Bonds

There has been a good vibe across the fixed rate bond market of late, with a number of providers battling it out for the top spots in our one, two and three year tables.

First we look at the one year term and Cynergy Bank was the first big mover. Its bond paying 2.28% claimed the leading spot. Soon after, Vanquis launched a new product paying 2.27%, while Habib Bank AG Zurich matched Cynergy at 2.28%. Seemingly not content to share the leading position, Cynergy Bank launched a new version of its one year bond, this time paying 2.32% AER.

Cynergy Bank's reign was short lived though, as Kent Reliance and Charter Savings Bank both launched new products, paying 2.36% and 2.34% respectively, each nudging ahead of Cynergy.

But that wasn't the end of it! In an early play this week Zopa's latest version paying 2.37% landed the provider top spot, but again this was a brief stint atop the table. First Oxbury matched the rate (2.37%), and then Habib Bank AG Zurich increased its offering to 2.38%, only to be pipped by Investec Bank who is currently offering the market leading rate of 2.40%. That early leader from Cynergy is nowhere in sight - having dropped off the table completely. Over the course of the last one and a half weeks, the average of the top five 1-year bonds has risen from 2.25% to 2.38%.

Looking at our two year table and it was a number of the same providers making waves. Cynergy Bank again claimed the lead, paying 2.68% but once more we saw Kent Reliance and Charter Savings Bank surpass the rate, this time paying 2.76% and 2.74% respectively.

In almost a carbon copy of the one year table, Zopa edged the lead by 0.01% with a new offering at 2.77%, but once again this was pipped as we headed into the bank holiday, this time by Hodge Bank, paying 2.78% AER, which remains in the leading spot.

Onto our three year table and we saw a hat-trick for Cynergy Bank. The provider climbed to the top paying 2.80%, meanwhile PCF Bank rose to joint second - matching the rate from Ikano Bank, both paying 2.75%. 

This time Charter Savings Bank did not push ahead of Cynergy, but came alongside seeing both providers paying 2.80%. However, the inevitable move from Zopa once again saw the two providers ousted from their leading position, with Zopa paying 2.81%.

But as we have come to expect, the battle hadn't ended and PCF Bank increased its offering to 2.82% as did Hodge Bank - so these two providers share the top spot as we end our working week.

There's been less action in the five year table, although a new market leading rate of 2.90% is being offered by PCF Bank and United Trust Bank - the highest rate we've seen for eight years! 

The upwards trend we have seen over the last couple of months certainly seems to be continuing, and should it continue in this way, we may not be far away from seeing the best buy rates top 3%.

Fixed Rate ISAs

Once again, these tables are far quieter as we appear to have moved out of the ISA season for now. However, Charter Savings Bank made  a noteworthy move in our one year table, hitting the top by paying 1.75% tax free. However UBL has decided to reclaim its crown by pipping Charter Savings Bank by the smallest of margins. UBL is currently heading the 1-year fixed rate ISA table paying 1.76%. A market leading rate but way below the best non ISA 1-year fixed term bonds! 

Our two year table is topped by Charter Savings Bank, paying 2.20% on the latest two year product. We also saw the return of Kent Reliance to our two year table, paying 1.97%, which holds fifth spot.

Our three and five year tables saw fewer changes than we have grown accustomed to, however United Trust Bank launched new products for each of these terms  and claimed the top spot in each. The provider is paying 2.25% and 2.35% respectively.

Variable Rate ISAs

In a busy period for the provider, we again saw Cynergy Bank entering our variable rate cash ISA table. The provider's Online ISA (Issue 22) pays 1.05% and claimed second spot at the time it was launched.

Aldermore soon dropped Cynergy down a peg though, with the new offering on its 30 Day Notice ISA paying 1.15%, joining the then current leader, Marcus. The key difference between these two offerings is that Marcus is an easy access account, while Aldermore requires notice or loss of interest of 30 days to access funds.

In a final move in the variable rate cash ISA world, Paragon made a return and holds the top spot with its Triple Access ISA - Issue 8, paying 1.20%. As the name says, you are only permitted to make three penalty free withdrawals You can make more than three withdrawals, but the rate will reduce from the date of the fourth withdrawal, to 0.25%.

Sharia Fixed Term Bonds

Al Rayan Bank continues to dominate this table and a new 1-year offering paying 2.40% matches the best non Sharia fixed rate bond from Investec. The two and three year term bonds offered by Al Rayan however, paying 2.80% and 2.85% respectively are market leading, beating the non Sharia offerings. So well worth a look.

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