Rates Rundown: The World Cup kicks off this week, as competition in the savings market moves steadily along, rather than bursting into life

15th June 2018

While many (though not everyone!) will be focusing on the Three Lions over the coming weeks, it is the single lion featuring in Shawbrook Bank’s logo that has perhaps put a smile on savers’ faces this week.

Shawbrook launched a market-leading three year fixed rate cash ISA on Thursday, which now tops our table.

We have also seen new entrants in our easy access table, which interestingly has led to a four-way tie for the leading position.

There have also been some arching runs made into a number of other best buy tables from a range of providers, including several noteworthy fixed rate bonds.

In extra time this week, Secure Trust Bank unleashed a new arsenal with no fewer than ten new accounts entering the savings field, including a hat-trick of accounts featuring in our notice account best buy table.

Easy Access Accounts

Although we have not seen a great deal of movement in this area of the market recently, this week saw new entrants in our best buy table.

Interestingly, we now have a top four all paying the same rate – 1.30% gross/AER.

New to the table this week was Tesco Bank, with the latest version of its Internet Saver – available to open online with just £1. The account includes an introductory bonus for the first 12 months, so may need to be reviewed after the first year to ensure you are still earning a competitive rate of interest.

We have also recently seen more accounts that restrict the number of withdrawals you can make in a year - though this is not necessarily a problem if you stick to the rules!

New from Coventry Building Society, is its Limited Access Saver paying 1.30% gross/AER – this account can be opened with just £1 in branch, online, phone or by post.

Interestingly, this account includes a bonus for the first 12 months and is limited to three easy access withdrawals per year. Although additional withdrawals are then permitted, subject to a penalty being applied.

Meanwhile, Sainsbury’s Bank has risen through the ranks, again paying 1.30% gross/AER on its Defined Access Saver – Issue 5. Unlike the two accounts previously mentioned, Sainsbury’s does not include any introductory bonus but does have a limit on the number of withdrawals that can be made each year (three) – any further withdrawals and the rate plummets for the rest of the year.

To view each these accounts and others, and to look at the pros and cons for each, please visit our easy access best buy table.

Fixed Rate Bonds

At the beginning of the week, Investec launched the latest version of its two year fixed rate product, with a market-leading rate of 2.15% gross/AER. However, to open the account a higher minimum deposit of £25,000 is required, which may not suit all.

Those who are looking to deposit smaller amounts, can do so with the recently launched OakNorth account, which is again a two year account, this time paying 2.14% gross/AER, just shy of the market-leaders (Investec and Atom Bank).

Then late in the week, Secure Trust Bank launched seven fixed rate bonds, ranging from one year through to seven years.

We now see the provider feature towards the top end of each of our fixed rate bond best buy tables.

The provider’s one year account, paying 1.88% gross/AER, claims second position in our table behind Atom Bank (2.05% gross/AER). The new two year account pays 2.14% gross/AER - joining OakNorth just behind the joint leaders, while its three year account paying 2.28% gross/AER also features in our best buy table.

The latest four year account sits just 0.01% behind the market-leading Vanquis Bank* and pays 2.51% gross/AER – both inflation-beating rates!

The provider also launched new versions of both its six and seven year products, with improved rates - now paying 2.71% gross/AER and 2.76% gross/AER respectively.

Finally, Secure Trust Bank also launched a new version of its five year account (with the same rate), so we continue to see the provider holding the joint-leading position with Vanquis Bank* and Paragon, while RCI Bank* still reigns over our three year table.

Further information on each of these accounts and other options can be found in our full fixed rate bond best buy tables.

Fixed Rate Cash ISAs 

A return to our best buy tables this week for Virgin Money. The new version of the provider’s one year fixed rate cash ISA now pays 1.41% tax free/AER and slides into fifth position by a whisker.

The provider accommodates those wishing to bank online, or in branch and by post.

Amongst the longer terms, Shawbrook Bank launched a market-leading three year fixed rate bond, paying 1.85% tax free/AER.

Further information on these accounts, along with other leading rates currently available can be found in our fixed rate cash ISA best buy tables.

Notice Accounts

An area of the savings market that has been dominated by Charter Savings Bank of late, until this week…

Secure Trust Bank has launched a variety of accounts with market-leading rates across the board.

The provider’s new 90 day notice account pays 1.67% gross/1.68% AER, the 120 day account pays 1.72% gross/1.73% AER and the 180 day account pays 1.77% gross/1.78% AER with each now featuring in our top five.

It is important to note that these accounts are each limited to three withdrawals per year, in addition to the full notice period being given.

To view the current top five notice accounts, please refer to our notice account best buy table or give one of our expert advisers a call for other options that may suit your needs.

 

Our Bath based savings experts are on hand if you would like any help with your savings, so why not give us a call on 0800 011 9705, we’d love to hear from you.

Alternatively, if you want to keep up to date with best buy rates as the hit the market, sign up to our Rate Alert emails and follow us on Twitter.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).


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