Here are some of the latest movements in the market.
BM Savings has launched a new Online Extra (Issue 17) easy access account paying 1.50% which includes a 1% introductory bonus for the first 12 months. This is a significant improvement on the previous issue, which paid 1% and the account now appears at the top of our easy access best buy table.
A welcome sight at the top of the best buy table and head and shoulders above the next best rate, in fact this is the highest paying account to feature on the easy access table since early December 2014. The only word of caution is that with a rate so much higher than the competition, demand could be high, so the account may not be around for long. Therefore, you may need to act quickly if you want to take advantage.
Hampshire Trust Bank has launched new versions of its 2 and 3 year fixed rate bonds, paying higher rates than the previous versions. The 2 Year Bond pays 2.10% (the previous version paid 1.80%) and the 3 Year Bond pays 2.35% (the previous version paid 2.10%). Both of these accounts now feature in our Best Buy Tables.
With many providers withdrawing best buy accounts completely or replacing them with lower paying versions, it is good to see a provider doing the opposite. Not only are the new versions paying a higher rate, they also went straight into our best buy tables.
United Trust Bank increased the rate on its 1 year fixed rate bond from 1.50% to 1.75% for new accounts opened. Then, two days later increased the rate on offer again to 1.90% and now appears in our best buy table.
Two increases in as many days sees the 1 year bond sitting pretty in the best buy tables, where appearances from this provider have been few and far between recently. A possible reaction to other changes happening in that week, nevertheless it is encouraging to see a provider determined to make an appearance in the tables.
Aldermore has launched new versions of its 1 and 2 year fixed rate bonds paying higher rates than the previous versions. The 1 year bond previously paid 1.75%, the new version is 1.90% and is now amongst the top five bonds for the term. The 2 year bond is now paying 1.95% (previously 1.85%), although this isn’t sufficient to break into the top five.
Another new best buy and suddenly the table is looking better, with more options closer to the market leading rate from Punjab National Bank (2%), painting a different picture from a few weeks ago.
Coventry Building Society has launched a Fixed Rate ISA (30) 31.05.2020, which pays 2.30% and is now the second best rate for a 5 year fixed rate ISA on the market after the State Bank of India (2.50%).
This provider has offered a best buy four year fixed rate ISA for some time now, so it is good to see an alternative term offered that also makes it into the table, particularly as in recent weeks, competitive ISA launches have been limited.
GE Capital Direct has launched a new easy access account, the GE Saver Issue 8 paying 1.30%, which is now amongst the top five easy access accounts on the market. Also launched on the same day was a 120 Day Notice Account, paying 1.65%, the joint second best rate on the market for a notice account, although the other account has a shorter notice period (Charter Savings Bank with 95 days’ notice).
This provider has made appearances in the best buy tables at various points in the past, but usually in just one category, so it is good to see two new accounts both appearing in the tables. Whilst there are better options available in both tables, it is another sign of challenger banks offering competitively priced accounts.
- Challenger Banks continue to dominate the best buy tables with most high street providers taking a back seat offering little in the way of competitive deals for savers. If you want to know more about this new breed of banks, you can find out more in our new Guide to Challenger Banks.
However, it has not all been good news over the last few weeks as a whole host of best buy accounts have been withdrawn from the market or replaced with lower paying versions.
West Brom Building Society and Paragon Bank have withdrawn best buy easy access accounts paying 1.40% and 1.35% respectively.
Charter Savings Bank has withdrawn its 95 Day Notice Issue 2 paying 1.80%. The replacement account pays a lower rate of 1.65%, but despite this it remains second in the notice account table after Secure Trust Bank (1.85%).
Also lowering the rates on offer on their fixed rates in the last few weeks has been Shawbrook Bank, Julian Hodge Bank, Charter Savings Bank, Paragon Bank, United Bank Ltd and Close Brothers to name but a few.