Receive the Savings Guru's updates straight to your inbox

November Savings Round Up

Rates are stabilising

Having witnessed a few months of falling interest rates on savings, we’ve seen a little stabilisation in the past month thankfully.

There’s been some new fixed rate bonds from Charter Savings Bank, which have provided some support for rates in the market and Metro Bank have just launched a 1 Year Bond paying 1.80% and an 18 Month Bond paying 1.90%, which are the best in the market aside from the Sharia banks.   These are very competitive rates in the current market and I don’t expect them to last long so move quickly to secure them if they appeal.

We have also seen a new best buy 5 Year rate from United Bank, which is paying 2.36%.  While, in the current climate, I couldn’t recommend anyone locking their money up for such a long period at that kind of rate, I understand that many people are.  I don’t expect it to last the month, therefore, if you are a longer term cash saver, it’s worth moving quickly to secure.

 

Regular Savings Accounts

October saw the reduction of market leading regular savings rates from First Direct and HSBC which both paid 5% to existing customers.   They’ve been replaced with rates of 2.75%, which still keeps them in our best buys, but is a sharp reduction.   M&S, which is part of the HSBC family alongside First Direct, have held out their 5% rate so I’d recommend any M&S customers grab this while they can. 

Anyone considering switching their current account and looking for an incentive to do so, should also have a look at M&S Bank.   They are offering a £100 gift card to switch and a further £80 if you stay for the year – this is the best switching offer on the market for current accounts.  Alongside the 5% regular saver and £500 overdraft, it’s a compelling package for switchers.

Essex based Saffron Building Society offer the best regular savings account with their 3% paying saver which can be opened in any of their branches or by post.  

Those looking for an online option should consider Coventry Building Society, who offer 2.50% on anything between £1 and £500 per month.  Unusually for a regular savings account, which mostly lock your money away for one year, Coventry also allow withdrawals with the loss of 30 days interest.

 

Help to Buy ISAs

November is the last month that savers who are looking to buy their first property can secure a Help to Buy ISA, as the product will be withdrawn on 30th November. Barclays offer the best savings rate with their 2.58% account but this is dwarfed by the 25% tax free bonus the government adds when you use it to buy a home (up to a maximum £3,000 bonus).

There is a replacement product, called the Lifetime ISA (LISA), which offers similar benefits but it is less flexible.  If you are saving for your first home, it could be worth securing a Help to Buy ISA before they are withdrawn on 30th.

I have long been calling for the simplification of ISAs as I feel there are too many different types on the market now and, what was a very simple savings product, has become far too complex for ordinary savers.  Unfortunately, with the general election planned for December, we are unlikely to see a budget until well in to 2020.  I’d be amazed if the first budget of any new government addresses the issue so think we may be stuck with the current system for at least another year.

 

Billericay Christmas Market

We will be at the Billericay Christmas market in Billericay High Street on Sunday 1st December.  If you have a burning savings question, want to win some fantastic prizes or just want to grab some Savings Guru giveaways (including our very own piggy banks!) do pop along and say hi!  

Our stall will be outside Café 134 (formerly Café & Cream) opposite Billericay Library.  We will be raising money for Fraser & Friends ( fraserandfriends.com/), a wonderful local charity, so please do come along and support them.

 

What are the best rates currently?

As we have witnessed in the past couple of months, the savings market can change extremely quickly.  We always recommend that you check our website for the latest rates. At time of print, our best personal savings rates are:

 

Term

 Interest Rate

 Provider

Instant Savings

1.45%

Marcus, Virgin Money

Notice

1.82%

Gatehouse Bank

1 Year

2.07% 

Al–Rayan Bank

18 Months

2.22%

Al–Rayan Bank

2 Year

2.32%

Al-Rayan Bank

3 Year

2.42%

Al-Rayan Bank

4 Year

2.20%

Bank of London & Middle East

5 Year

2.36%

UBL 

 

That’s all for this month.  If you don’t want to wait for next month’s update, then you can subscribe to our newsletter by submitting your email address on our website!

 

About The Savings Guru

We help savers get the best deal for their money by providing unique insight in to the savings market.  We help prospective banks apply for a banking licence and we help build customer services, products and marketing for them.  We also work with existing banks and building societies to improve their savings propositions.  This  insider view of savings means we are uniquely placed to help savers.

Find out moreMeet the Team

Ask the Guru a Question

Your Name

Please let us know your name.
Your Email

Please let us know your email address.
Question

Please let us know your message.


Invalid Input