Savings round up - 19th December
18/12/2022
It's been another mixed week for savers. Thursday's Bank of England decision to increase Base Rate by 0.50% to 3.50% is good news for easy access savers. Zopa have taken over top spot with an unrestricted account paying 2.86% and there's likely to be more movements this week as other providers react. There's every chance that we will see 3% very soon - if not before Christmas then at the start of the New Year. Fixed rate bond pricing continued to fall back though, as we've warned the past few weeks, and we expect further cuts this week as providers make changes ahead of the Christmas holiday period where there's traditionally very few, if any, changes. Here's our round up of the best buys and key changes from the savings market:
Zopa are the new leaders on easy access, after the app based savings provider increased its rate to 2.86% following the Base Rate increase, and Buckinghamshire Building Society pulled its single access account which was top. Coventry Building Society pay 2.85% but savers are limited to six withdrawals (after which interest penalties are paid for further withdrawals). Chorley Building Society pay the same rate but only allow four withdrawals over a calendar year before the rate drops to 1% from the fifth withdrawal onwards. Al Rayan are next at 2.81% with Chorley also introducing an account with six withdrawals permitted at a lower rate of 2.75%. There's a gap then to Sainsburys at 2.61%, who increased the rate on their Defined Access Saver, which moves them ahead of a clutch of providers at 2.60% led by Paragon Bank via Raisin.
Chase announced they will be increasing their rate to 2.70% on 4th January and we expect there to be further improvements this week, as providers digest the Base Rate increase and react.
Savers living near a Marsden Building Society branch can get 3.85% on 180 Day Notice but, for everyone else, the best available is Stafford Railway Building Society's 3.50% on 120 Day Notice. The mutual also pays 3% on 90 Day but both accounts are limited to three and four withdrawals per Society year respectively. Next best is OakNorth, who increased its rates to 3.35% for 120 Day Notice and 3.20% for 90 Day. They move ahead of United Trust Bank at 3.20% for their 200 Day Notice (they also pay 2.90% on 100 Day and 2.50% on 40 Day). DF Capital are next paying 3.15% on 90 Days Notice, just ahead of BLME whose 90 Day Notice account pays 3.14%.
Sadly our predictions on 1 Year Fixed rates dropping came to fruition with five of the top six cutting rates, only State Bank of India surviving and they lead the way at 4.31%. Smart Save withdrew at 4.32% and came back in at 4.26% to take second spot. National Bank of Egypt pay 4.25% and lead a clutch of providers at that rate including Zopa, Cahoot, Gatehouse, Union Bank of India, Shawbrook and Atom. Investec are next at 4.21% and there's three providers at 4.20%. We expect the State Bank of India rate to go but with 12 providers priced 4.20% - 4.26% we think pricing will hold at this level - for now.
DF Capital are best buy at 4.60%, although we expect this to go by Christmas. Next are Hampshire Trust Bank at 4.50% alongside Nottingham Building Society's online and app based spin off Beehive Money. Union Bank of India are at 4.45% before a big drop to BLME, Gatehouse and Shawbrook at 4.30%.
Beehive Money lead the way at 4.60% with Shawbrook and Secure Trust Bank sharing second spot at 4.55%. Zenith Bank are next at 4.53% which is available via Raisin or direct. The two Indian banks - State and Union - both pay 4.51% which keeps them ahead of BLME who pay 4.50% direct and also via Hargreaves Lansdown Active Savings.
Savers living near Melton Mowbray can get 4.75% if they are prepared to go in to one of the mutual's four branches. However, for everyone else 4.65% is the best buy which comes from Gatehouse Bank and Beehive Money. Secure Trust and Cynergy both pay 4.60% ahead of Investec, who pay 4.55% on Raisin, and the same rate on Hargreaves Lansdown.
Gatehouse Bank top the charts at 4.65% - way ahead of Union Bank of India and BLME at 4.50%. Zopa pay 4.46%, to stay just ahead of Aldermore and United Trust Bank at 4.45%
Beehive Money pay 4.80% to take top spot ahead of a three way tie for second with Gatehouse Bank, Secure Trust Bank and State Bank of India all paying 4.65%. Aldermore Bank pay 4.60% ahead of seven providers at 4.50%.