The week in savings - w/e 19th December

20/12/2021

Monday 13^th December

Recognise Bank cut the rate on their 95 Day Notice account from 0.95% to 0.75%, falling from 5^th in the market to 11^th

Tuesday 14^th December

Paragon reintroduce their 120 Day Notice Account, paying 1%, which occupies 6^th place in our best buy tables

SmartSave Bank withdraw their 2 Year Fixed from sale, which promotes Zopa to best buy at 1.61%

Wednesday 15^th December

Castle Trust Bank increased their 1 Year Fixed Rate to 1.35%, moving up to joint 4^th, and withdrew their 2 Year Fixed from sale

Thursday 16^th December

Secure Trust Bank improve their 5 Year Fixed Rate to 2.10% to move up to joint top.  They also withdraw their best buy 3 Year ISA, which had been best buy, promoting UBL to the summit.

Investec launch a new 1 Year Fixed on the Raisin platform, paying 1.33%, which is joint 6th in the market

JN Bank reduce their fixed rate pricing:

• 1 Year – 1.20% (outside top 10)
• 3 Year – 1.60% (outside top 10)
• 4 Year – 1.65% (8^th)
• 5 Year – 1.70% (12^th)

The Bank of England voted 8-1 in favour of increasing the Base Rate by 0.15% to 0.25% as inflation hit 5.1%. 

Friday 17^th December

Paragon Bank improved several fixed rates:

• 2 Year Fixed – 1.60% (joint 2^nd)
• 3 Year Fixed – 1.70% (joint 8^th)
• 5 Year Fixed – 1.80% (joint 8^th)

• 2 Year ISA – 1.17% (joint best buy)
• 3 Year ISA – 1.30% (2^nd)
• 5 Year ISA – 1.35% (joint 10^th)

Kent Reliance raised their 1 and 2 Year rates:

• 1 Year Fixed – 1.30% (joint 9^th)
• 2 Year Fixed – 1.50% (outside top 10)

Ford Money upped their fixed rate bond pricing:

• 1 Year – 1.30% (joint 9^th)
• 2 Year – 1.50% (outside top 10)
• 3 Year – 1.55% (outside top 10)

In line with the Bank of England Base Rate increase of 0.15% to 0.25%, Skipton raised their Cash ISA tracker rate to 0.60%, moving up to joint 4^th

Summary

The big news of the week was the Bank of England raising Base Rate.  With inflation hitting 5.1%, they were left with little choice but to take some action.  However, savers hoping for an increase in interest rates are likely to be disappointed as I expect that, other than where contractually obliged to (e.g. for tracker products), the high street banks will pass on the increase to borrowers only.   We will need to see further rises in base rate before savers start to see any benefit.

With the Christmas holidays approaching, we saw a lot of jostling for position, and some best buys removed from sale, or their rates cut, as banks prepared for the festive break.  While there was a lot of movement during the week, I expected more and therefore think it is likely we will see more changes this week before the shutdown.  I expect we may lose some of the current best buys with Investec's Online Saver (0.71%) and Gatehouse's 1 Year Fixed (1.41%) looking most vulnerable to being withdrawn prior to Christmas.  

This is my last update of the year so let me take the opportunity to wish you all a Merry Christmas and a Happy & Prosperous New Year.