Savings round up - 1st August
The pace of change in the savings market slowed this week with seven new best buys, down on nine and ten in previous weeks. With the Bank of England due to announce its base rate decision on Thursday at noon, expect to see limited changes ahead of that while providers wait and see what the Bank decides to do. ISAs continue to see growing competion with four new best buys last week. Here's our round up of the key changes and best buys in each category:
Al Rayan Bank continue to lead the way at 1.60% but the gap is closing with several providers moving ahead of last week's second place provider, Shawbrook (1.52%). Yorkshire Building Society are paying 1.55% on balances of £10,000+ and 1.60% on £50,000+ on their internet saver. Sainsburys Bank pay 1.55% too but the rate almost halves if savers withdraw from the account more than three times in a year. Charter Savings are just behind on 1.54% on their easy access account which has no tiers or access restrictions. With Chase, Family Building Society, Nationwide, Newcastle and Zopa all paying 1.50% too, there are 12 providers paying 1.50% - 1.60% and this is likely to mean we will see a provider breakout of this range. With the Bank of England due to announce its decision on base rates this Thursday (4th August) and a rise a certainty, it may be later this week, or early next week, before we see that change as providers wait to see if the Bank moves base rate up by 0.25% or 0.50%.
Notice remains unchanged on the week with Investec still topping the tables with their 90 Day Notice account paying 2.10%. Shawbrook next best at 2.06% but for 120 Days' Notice. OakNorth's 120 Day (2.05%) and 95 Day (2.02%) Notice accounts keep them in third spot, ahead of Allica Bank, whose 95 Day Notice pays 2.00%. However, QIB are just behind paying 1.95% via Raisin and the £25 sign up bonus for new customers via our site could make this the more rewarding option for those with £10,000 plus to invest, as this effectively gives a 0.25% boost to the return.
Charter Savings Bank are the new best buy paying 2.83% for 1 Year Fixed with fellow One Savings Bank Group stablemat, Kent Reliance, in second spot at 2.79%. Both moved ahead of previous leader, Gatehouse Bank, who pay 2.75% to head a clutch of providers in joint 3rd. However, there is £25 cashback for new savers applying for this bond on Raisin, via our site. The same deal is available direct with Tandem and Close Brothers also paying 2.75%. With Charter and Kent Reliance holding £17.5bn of deposits between them, they are large enough to sustain those front positions for at least a couple of weeks so expect to see some of the chasing pack increase rates to complete with them.
DF Capital remain the leaders with a best buy rate of 2.95% but Charter Savings Bank has moved in to second spot paying 2.88%, ahead of previous long term leader QIB (2.85%), who drop down to joint third alongside Paragon Bank, who this week broke through the £10bn of savings milestone.
All change at the top of 2 Year with Charter Savings Bank leading the way paying 3.12%, just ahead of Aldermore Bank, who increased their rate to 3.10%, where they sit alongside Gatehouse Bank, DF Capital and app only Monument Bank. With 15 providers paying between 3.01 - 3.12% we expect to see further increases to rates this week.
DF Capital are still out on their own in front at 3.20% but Charter Savings Bank have tucked in just behind at 3.17%, just ahead of Aldermore Bank who are paying 3.15% in third alongside Gatehouse Bank, Close Brothers and Cynergy Bank.
Aldermore Bank are outright leader with a best buy rate of 3.20% with Gatehouse Bank (3.16%) still second but only just ahead of United Trust Bank, who upped their rate to 3.15% last week to take third spot.
It's a completely new line up at the top of 5 Year with last week's leader, PCF Bank, pulling out of the market. United Trust Bank increased their rate to 3.35% to take top spot with app only bank, Monument, in second spot but with a hefty £25,000 minimum balance. Aldermore Bank are in third spot paying 3.25%
Newcastle Building Society have put a serious marker down with their Triple Access ISA still best buy paying 1.50% and amazingly haven't been challenged with Shawbrook and Cynergy Bank still sharing second spot with both offering 1.40%. Charter Savings, Paragon's Triple Access ISA and Nationwide's Triple Access at 1.35% share fourth spot. With no changes last week, we can't see that continuing this week so expect rate rises on easy access ISAs this week. With interest rates sharply up in 2022, there will be many savers now using their Personal Savings Allowance who may want to look at easy access ISAs instead of ordinary easy access accounts to avoid paying tax on their savings interest.
Teachers Building Society are the new leaders, having increased the rate on thier 90 Day Notice to 1.45% (with a higher rate of 1.50% for teachers and education professionals) to knock long term leader, Aldemore Bank and their 30 Day Notice at 1.40%, down to second. Mansfield Building Society are third at 1.20%. With easy access ISA rates improving, only the Teachers and Aldermore account pay anything that is comparible so savers shouldn't look any further down this list.
We saw significant change in 1 Year ISAs last week with previous leader, Secure Trust Bank (2.15%) now down to 5th. They've been replaced by new joint leaders, Kent Reliance and Gatehouse Bank, who both pay 2.20%. Paragon and Virgin Money's increases to 2.17% will likely have been expected to secure top spot but they share joint 3rd. Virgin Money may well seek to correct this in the coming week.
Virgin Money do hold top spot in 2 Year with an improved rate of 2.62%. Aldermore Bank are second paying 2.60% alongside Paragon Bank and Gatehouse Bank. Leeds Building Society match Secure Trust Bank's 2.55%, although there's a fixed maturity date for the Leed's ISA of 6th January 2025, making it a 28 month fix.
Aldermore Bank lead the field at 2.75% but their lead has been closed with Gatehouse Bank moving up to second spot paying 2.70%. Paragon Bank and Secure Trust Bank share third spot at 2.65%.
Gatehouse Bank are the new leaders with an increased rate of 2.80% on their 5 Year Fixed ISA with Secure Trust Bank second at 2.75% and Castle Trust Bank third at 2.71%.