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Savings round up - 3rd October

It was a week of massive movement in the savings market with 1 Year fixed rates up by half a percent and almost three quarters of a percent on 5 Year.  The turmoil in the financial markets is certainly presenting some great rates for savers with the highest interest rates for over a decade.  While we are still some way off the highs of 2008, when 7% was paid on 1 Year, there are some excellent rates being paid by comparison to what savers have been offered in recent years.  Even NS&I is getting in on the act, with the prize pool on Premium Bonds increasing to 2.20% for the October draw.  Best buy rates have improved in every category this week and while there seems to be no sign of rates falling any time soon, the pace of last week's increases cannot be maintained.  Here's our round up of the best buys and key changes from the savings market:

Easy Access

There was briefly a new leader on easy access when Charter Savings took top spot paying 2.25% on Thursday night.  However, Al Rayan Bank responded to that move by increasing their own rate on Friday to 2.35% to gain top spot.  There's a gap after this to a clutch of banks at 2%.  RCI Bank increased their rate to 2%, as did Sainsbury's on their defined access saver (where the rate drops if you withdraw more than three times a year) and Secure Trust Bank.  They joined 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.  Investec moved up to 7th by raising their online savings rate to 1.95% with UBL and Atom sharing eighth at 1.90%.  UBL's 1.90% is via Raisin which also pays a £30 sign up bonus for savers applying via Saving Guru.

Notice

Secure Trust have taken over top spot paying 2.60% on their 180 Day Notice account.  BLME are second with 2.52% on their 90 Day Notice but have been joined by Oxbury, although savers need to give 180 Days' Notice to get their 2.52%.  A touch behind is United Trust Bank, who pay 2.50% on 200 Day and 2.25% on 100 Day Notice.  RCI Bank were also on the move, upping their 95 Day Notice rate to 2.40%.

1 Year Fixed

Such has been the turmoil in the financial markets, 1 Year rates have jumped over half a percent on the week!  We now have four providers paying 4% or more on 1 Year.  App only bank, Atom, lead the way at 4.11%.  Next is Hampshire Trust Bank, who pay 4.02%.  Virgin Money and Shawbrook both pay 4% to share third with United Trust Bank next at 3.95%.  Other banks on the move include Oxbury (3.91%), Investec and Cynergy (both 3.90%) and RCI Bank, who moved up to 3.87%.   

18 Month Fixed

United Trust Bank's 15 Month Bond at 4.25% leads the way.  Shawbrook Bank are next at 4.11%, narrowly ahead of Family Building Society paying 4.10%.  Next are two Raisin savings platform offers - Gatehouse Bank and Paragon Bank both pay 3.95%.  

2 Year Fixed

Cynergy Bank made a late move on Friday to take top spot paying 4.50% and knock SmartSave (4.41%) down to second.  Shawbrook are a whisker behind at 4.40%.  Investec had stormed to the top of the charts early in the week.  They increased their rate, via Raisin, to 4.35%, during the week having been at 4.25% initially.  Hampshire Trust Bank had led the market at 4.32%, highlighting just how much movement there has been.  United Trust Bank are just behind at 4.30%, with RCI Bank also paying the same rate.   

3 Year Fixed

Cynergy Bank are also the new leader on 3 Year paying 4.60% with SmartSave next at 4.41%.  United Trust Bank are third at 4.40% alongside Buckinghamshire Building Society with RCI Bank's 4.30% heading a three way tie alongside Zopa and Atom.    

4 Year Fixed

United Trust Bank are best buy at 4.45% with Zopa next at 4.35% and RCI Bank third at 4.32% with the top three all increasing rates during the week.  

5 Year Fixed 

The best buy rate jumped almost 0.75% on the week as Tandem now lead the way paying 4.55%.  Their late move was enough to knock SmartSave down to second at 4.51%.  United Trust Bank are next at 4.50%.  Atom and Zopa Bank both pay 4.40% with RCI Bank next at 4.35%.  With the market pricing in base rate rising for two years before falling again, 5 Year rates are in line with 2 and 3 Year Fixed currently.  If that view changes, we could see 5 Year Fixed rates increase further.

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