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Savings round up - 7th November

All eyes were on the Bank of England Base Rate decision on Thursday and the 0.75% increase to 3% was in line with market predictions.  Those hoping for big jumps for interest rates on savings could be in for disappointment. Although 8/9 of the top easy access providers increased rates, Al Rayan's 2.81% still leads the way.  On 1 Year, RCI's 4.60% best buy rate is going to be cut this Monday morning which will leave Vanquis on top - a position they are unlikely to occupy for long.  With the best 18 month and 2 Year Fixed rates also getting pulled last week, for the first time in months, there's no improvement in rates on any of the product categories in this round up.  The reason for this is that many providers have priced in the rises on fixed rates and also the expectation of where Base Rate will peak next year is falling.  It is possible we could now move in to an environment of fixed rates falling.  In our opinion, it will only be competition from providers, rather than market fundamentals, which could move rates up from these points.

There's still room for easy access rates to go up, but this is likely to be gradual, and we think that saves may have to wait for the December Base Rate decision to see an easy access rate with a 3 in front of it. Here's our round up of the best buys and key changes from the savings market:

Easy Access

Although Al Rayan Bank still lead the way at 2.81%, there's been significant movement behind them with several providers moving ahead of and after the Base Rate increase.  App based Atom and Tandem banks share joint second with both increasing their easy access rates to 2.55%.  Marcus and Saga were also on the move - both up to 2.50% - but with their rate including a 0.25% bonus for 12 months.  RCI Bank are next at 2.45%, alongside Investec.  Zopa and Harpenden Building Society follow at 2.40%, and while the latter only permits three withdrawals a year, it is the best paying postal easy access account.  Other than Al Rayan, the rest of the top nine is occupied by providers who increased their rate during the week.  

Notice

United Trust Bank still lead the way at 3.20% for their 200 Day Notice (they also pay 2.90% on 100 Day and 2.50% on 40 Day) but have been joined by Allica Bank who increased their 180 Day rate to 3.20% and their 95 Day to 3.10%.  Oxbury Bank also increased rates with their 180 Days' Notice now paying 3.12% - they also pay 3.10% on 120 Day and 3.07% on 95 Day. Family Building Society are next paying 3.10% on 90 Day Notice, although they require a substantial £20,000 to open an account. One notice account worthy of consideration is RCI's Evolve Savings, which pays 2.50% on just 14 days' notice.  All funds deposited in the account are used to finance pure electric vehicles and charging points.

1 Year Fixed

RCI Bank remain top paying 4.60%, but this rate is being cut this morning so move quickly to secure it.  They have been joined at 4.60% by Provident Financial's Vanquis Bank.  There's a four way tie for third place with Tandem BankGatehouse Bank, Oxbury and Ikano Bank  all paying 4.50%.  Tandem and Gatehouse Bank's rates are both available direct but also via Raisin, where savers signing up via Savings Guru get £30 cashback. United Trust Bank are next at 4.45%, having upped their rate during the week, followed by Dudley Building Society and Charter Savings Bank.

18 Month Fixed

There's a five way tie for top spot. Hampshire Trust Bank pay 4.60% direct, as do United Trust Bank whose bond is for 15 Months, and Family Building Society, although they ask for a substantial £20,000 as a minimum balance.  Gatehouse Bank pays 4.60% which is also available on the Raisin savings platform where savers signing up via Savings Guru get £30 cashback.  Tandem Bank complete the group at 4.60%.  

2 Year Fixed

Vanquis Bank lead the way at 5% with BLME having pulled back their rates during the week.  Next are RCI Bank at 4.85% followed by Gatehouse Bank at 4.80% alongside Tandem Bank - both rates being available direct or via Raisin - and Ikano Bank.  United Trust BankInvestec and Zenith Bank pay 4.75% alongisde Zopa, DF Capital and Dudley Building Society.

3 Year Fixed

Gatehouse Bank still lead the way at 5% but have been joined at the summit by Vanquis Bank.  Tandem Bank are third at 4.90% alongside United Trust Bank and Close Brothers.  RCI Bank are next at 4.85%.

4 Year Fixed

Gatehouse Bank top 4 Year at 5.05% with United Trust Bank the best non-Sharia rate at 4.95%.    RCI Bank are third at 4.90% alongside Vanquis Bank with Zopa completing the top five at 4.85%.  There's a drop then to Aldermore Bank at 4.60%.

5 Year Fixed 

Gatehouse Bank remain leaders at 5.10%United Trust Bank increased their rate to 5.05% durign the week to move joint second with Close Brothers.  Next is Tandem Bank at 5% alongside Dudley Building Society with RCI Bank completing the top six at 4.95%.

 

Photo: Hush Naidoo Jade Photography

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