Savings round up - 26th September
26/09/2022
It was no surprise that the Bank of England raised base rate on Thursday. The only debate was what the rise will be and the Bank matched the previous increase of 0.50% taking Base to 2.25%. With no meeting until November, it's highly likely that another increase will be on the cards then. It's certainly given savings a boost with Atom becoming the first provider to pay 4% on 2 Year in a decade, only to see SmartSave Bank trump it 24 hours later. There were new best buys in every fixed rate bond category and plenty of improvements to easy access rates. Here's our round up of the best buys and key changes from the savings market:
Although Al Rayan Bank continue to lead the way at 2.10%, as we predicted in last week's round up, there was plenty of movement below them. Gatehouse Bank are no longer outright second as they've been joined by Yorkshire Building Society who are paying 2% on their rainy day saver. The account pays 2.50% on the first £5,000 tier, making it the best buy for those with smaller balances. For those with larger balances, it's still attractive e.g. £25,000 will earn a return of 2.10% on the whole balance, allowing for the 2.50% paid on the first £5,000 tier. However, only two withdrawals are permitted, plus closure. Ford Money are next at 1.95% - they automatically pass on interest rate increases to all savers, rather than operate issue numbers or ask savers to request to be moved to the higher rate. Atom Bank are next, having increased their rate sharply from 1.35% to 1.90%. Zopa are joined at 1.85% by Buckinghamshire Building Society, whose single access saver permits one withdrawal plus closure each year.
BLME continue to lead the way at 2.52% on their 90 Day Notice but there's a new second place with United Trust Bank increasing their top rate to 2.50%. Savers need to give 200 Days notice to get this but they also pay 2.25% on 100 Day and 2.10% on 40 Day. Al Rayan Bank drop to third paying 2.40% on their 120 Day Notice with Close Brothers next at 2.35% for 95 Days' Notice.
There was a big jump in 1 Year rates with four providers passing last week's leader, Castle Trust. Monument Bank are the new best buy at 3.60%. United Trust Bank are next at 3.55% with Charter Savings Bank also at the same rate. Oxbury Bank moved up to 3.48%, which took them above Castle Trust until they withdrew to new customers. Next is Atom Bank at 3.45%.
United Trust Bank's 15 Month Bond at 3.65% leads the way. Charter Savings pay the same rate but for 18 months fixed. Oxbury are just behind both at 3.60% before a big drop to Paragon Bank at 3.40% via Raisin.
Wtih swap rates moving to 4.50%, there was a surge in activity in 2 Year. SmartSave Bank lead the way at 4.01%, toppling Atom who had been best buy at 4%. Monument Bank are third paying 3.75% with Charter Savings Bank at the same rate. Oxbury are at 3.73% with Hampshire Trust Bank, last week's leaders, next at 3.71%.
The new 3 Year leader is Market Harborough Building Society who are paying 4.10% on a fixed maturity of 31st October 2025. There's a big gap from them to Oxbury and SmartSave Bank in joint second at 3.82%. Last week's leader, Hampshire Trust Bank, are next at 3.80% with United Trust Bank fifth at 3.75%.
United Trust Bank are best buy at 3.77% with Zopa next at 3.61%, after both providers increased their rates during the week. BLME drop to third at 3.60%, ahead of OakNorth at 3.58%
SmartSave Bank are top at 3.81%, a whisker ahead of United Trust Bank, who upped their rate to 3.80% last week. BLME and Close Brothers share third place with both paying 3.75%. Oxbury and Atom both increased their rates to 3.70% to move up to joint fifth.
Photo credit: Towfiqu barbhuiya