🔔 The spark becomes a flame – let’s hope it stays alight

After months of reporting on the relentless cuts to savings rates, it is positively exciting to see the ongoing competition that is present at the moment - mainly in the fixed rate bond market.

Here’s a rundown of some of the highlights and the best rates now available.

Three weeks ago, the best one year fixed rate bond on offer was paying less than 1%. Since then, a small band of challenger banks have been battling it out for the top spot.

As we reported in our last article, United Trust Bank and Charter Savings Bank jostled for the top spot in the 1-year bond table, before United Trust Bank won the battle by paying 1.10% AER.

But that was not the end of the story.

Over the last two weeks there have been multiples changes to the best buy tables across all terms – with old favourites such as Secure Trust Bank, OakNorth Bank, and Hodge joining United Trust Bank and Charter Savings Bank in the fray.

The result is that all of the 1-year fixed rate bonds in our Best Buy table are now paying 1% or more – a big change considering just three weeks ago the best rate on offer was just 0.95%

The best 1-year fixed rate bond on offer at the time of writing is OakNorth Bank, paying 1.21% AER.

Over a two year term, most of the same providers also pushed up the best rates on offer, from a low of 1.15% at the beginning of August, to 1.30% today from OakNorth Bank.

Even over five years there has been some activity which has pushed the average of the top five up to 1.33% from 1.25% just two weeks ago. However, UBL UK has remaining in the top spot paying 1.40% AER since the end of June.

There have also been some other positive moves, such as the Secure Trust Bank 90 Day Notice Account which has been increased twice over the last two weeks from 0.80% AER to its current rate of 1.16% AER - to see it claim the top spot. Will others follow suit?

It’s unlikely that we’ll see best buy rates recover to the levels they were at the beginning of the year before the Pandemic took hold, but at least there is some reason for cheer.

Of course, we don’t know how long this activity will continue – let’s hope it’s a bit longer.

Keep an eye on our best buy tables for up to the minute information on the best rates on the market.