Savings round up - 8th August
08/08/2022
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 made a surprised move by increasing the rate on their easy access account to 1.80%, despite already leading the way at 1.60%. However, they've helped savers by moving so aggressively as this has seen a raft of other providers move to close the gap. Shawbrook remain second place provider but at an improved rate of 1.75%. Tandem sit in third, having raised their easy access rate to 1.65%, and a new account from Cynergy takes fourth spot, although its 1.60% rate comes with a 0.15% bonus for 12 months. Yorkshire Building Society are paying 1.55% on balances of £10,000+ but also pay 1.60% on £50,000+ on their internet saver. Skipton are next at 1.56% with several providers at 1.55% including private bank Brown Shipley, which can be accessed by the Raisin savings platform, and comes with a £25 sign up bonus for savers new to the Raisin platform who apply via the Savings Guru website.
Last week's leader, Investec, drops to third play with their 90 Day Notice account paying 2.10%. This is because OakNorth's 120 Day (2.15%) and 95 Day (2.12%) Notice accounts both had a 0.10% rise last week and Paragon Bank relaunched their 120 Day Notice at 2.15%. Shawbrook also hiked rates with their 120 Day Notice now paying 2.06%.
Last week's leader, Charter Savings, were overhauled three times during the week. OakNorth were first to move - to 2.85% - and were joined by QIB Bank, which also comes with a sign up bonus for new Raisin customers. The most astonishing move was from Union Bank of India (UK) who went a staggering 0.35% clear of those two though paying 3.20%. Obviously it's a great rate for savers but you may find it painful to apply online and, with the rate being that high by comparison to competitors, we expect they will see a deluge of postal savers too, who are often shut out from the best rates which tend to be online only. Charter Savings have been joined by Monument Bank at 2.83% to complete the top five. While only 0.10% separates second from twelth, there's likely to be movement again this week but don't expect anyone to chase Union Bank down. We expect that competitors will simply wait for them to pull out, which could be as early as the end of this week.
Union Bank of India also top 18 Month fixed paying 3.25%. While last week's leader, DF Capital, have pulled out, there's still a three way tie for second spot with QIB, United Trust Bank and Tandem Bank all paying 2.95%.
With 2 Year so tightly bunched, we forecast plenty of movement last week and weren't disappointed, with last week's leader, Charter Savings Bank, now down in joint 6th. Union Bank have taken top spot payin 3.30% with OakNorth Bank second paying 3.17%. QIB, United Trust Bank and Monument Bank all pay 3.15% to share third spot, but Monument want a significantly higher minimum balance of £25,000.
Union Bank again lead the way but their 3.30% rate is only just ahead with United Trust Bank close behind at 3.25%. OakNorth are third at 3.23% and Shawbrook also increased their rate during the week, to 3.22%. Although DF Capital have withdrawn, QIB are paying 3.20% to take fifth. With this category looking tight, we expect to see some movement in the chasing pack responding to all the top five having increased rates during last week.
Again, Union Bank top the charts by paying 3.35% on their 4 Year rate with United Trust Bank just behind in second spot paying 3.30%. OakNorth improved their rate to 3.25% during the week, which takes third spot ahead of last week's leader, Aldermore Bank, who are fourth paying 3.20%.
United Trust Bank are the best buy rate at 3.45%, preventing a clean sweep by Union Bank. Union do share second spot with Shawbrook Bank at 3.40%, with a big gap down to Monument Bank in fourth at 3.30%. OakNorth are next at 3.27% with the only other move of the week, ahead of Aldermore Bank in sixth at 3.25%
ISAs
Newcastle Building Society still lead the way with their Triple Access ISA paying 1.50% but have been joined by Marcus and Saga, who both increased their rates to 1.50% during the week, however both come with a 12 month bonus of 0.25% in that rate. Shawbrook and Cynergy Bank share fourth spot with both offering 1.40% but expect to see more movement in the top five this week as we expect other providers to challenge these top rates.
There's no change to notice ISAs with Teacher's Building Society still leading the way with their 90 Day Notice paying 1.45% (with a higher rate of 1.50% for teachers and education professionals) and previous long term leader, Aldemore Bank and their 30 Day Notice at 1.40%, in 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.
Virgin Money are back on top with an improved rate of 2.27%, to narrowly see off Close Brothers who are second at 2.25%. Last week's leaders, Kent Reliance and Gatehouse Bank, who both pay 2.20% share second spot but have been joined by Shawbrook Bank and Secure Trust Bank.
Last week's leaders, Virgin Money (2.62%) drop to fourth as Secure Trust Bank are the new leaders with a best buy of 2.70%. Shawbrook and Close Brothers share second at 2.65% with Aldermore Bank next at 2.60%
Secure Trust Bank also top 3 Year with an improved rate of 2.80% with Shawbrook next at 2.77%, pushing last week's leader Aldermore Bank (2.75%) down to third.
It's the same top two in 5 Year with Secure Trust Bank's 2.85% enough to see off Shawbrook Bank (2.80%), who share second with Gatehouse Bank and Close Brothers.