Savings Rates Rundown

16th October 2014

Much of the news recently has revolved around account withdrawals as providers replaced their top rates with lower paying issues. But this week started with some positive news as BM Savings stormed to the top of the easy access best buy table and consolidated its position as the top easy access variable rate ISA.

BM Savings has launched new issues of its Online Extra and ISA Extra accounts. The new accounts are both in our best buy tables, with the Online Extra Issue 14 paying 1.60% on balances over £1,000, including a 1.10% bonus for the first 12 months (the previous version was paying 1.35%). The ISA Extra (Issue 12) is paying 1.60%, also with a 12 month bonus of 1.10% (previously 1.55%).

So, good news and hopefully it will lead other providers to follow BM Savings’ lead and bring out some better deals to start to push rates back up.

Other news was less positive, as various providers withdrew their top deals;

Secure Trust Bank removed its 2 Year Fixed Rate Bond paying 2.36%, then launched a new version paying 2.11%.

Shawbrook Bank once again lowered the rate on its notice accounts. The new versions are paying much lower interest rates, with the 95 Day Notice Issue 15 paying 1.45% (previously 1.60%) and the 120 Day Notice Account Issue 20 is paying 1.60% (previously 1.75%). The new issues are still best buys, and the new 120 day rate of 1.60% is top of the Notice Best Buy Tables.

Investec re-priced its 1 and 2 year fixed term deposit accounts. The new versions pay 1.70% (previously 1.80%) for 1 year and the 2 year is paying 2.10% (previously 2.20%).

Shawbrook Bank withdrew its 5 Year Fixed Rate Bond Issue 15 paying 3.20%. The new version is paying a lower interest rate of 3%.

The above accounts pay a lower interest rate than the previous versions, but the new versions are still fairly competitive. It is possible that these providers are keen to get savers’ money in, but don't need to offer a rate that sits head and shoulders above the rest of the competition.

We can but hope that the competition we saw previously which pushed these rates upwards will reoccur, leaving providers feeling less exposed and allowing the top deals to hang around for a bit longer.

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