Savings round up - 3rd January

Rates continue to get better for savers using variable rate accounts.  The best buy easy access rate will be at least 3.20% this Friday and we have a 90 Day Notice Account that is tracking at the Bank of England Base Rate.  Savers who prefer to fix continue to see rates fall sadly.  Longer term fixed rates are falling sharply and, although the 1 Year best buy is up a smidgen on our last update, it's an outlier and we are likely to see the best 1 Year fixed rates drop below 4.25% soon. With only four of our easy access providers responding to the Base Rate rise so far, there's scope for higher rates soon - but we expect it to be a slow start to the New Year with most rate changes likely to be at the end of this week or next week. Here's our round up of the best buys and key changes from the savings market:

Easy Access

Zopa have remained top of the tables since its pre Christmas increase to 2.86%.  However, that's going to change this week as Coventry Building Society, who are currently second paying 2.85%, will increase their rate to 3.20% on Friday 6th January. Savers are limited to six withdrawals (after which interest penalties are paid for further withdrawals) but this is significantly better than anything else in the market currently.  

Al Rayan are the next best at 2.81% with Chorley Building Society's account, which also permits six withdrawals, paying 2.75%.  They've been joined by Cynergy Bank whose 2.75% rate includes a 0.15% bonus for 12 months. Chase will be paying 2.70% (up from 2.10%) from 4th January as they become the fourth provider in our charts to respond to December's Base Rate increase.  Hopefully there's more rate increases to come this month!

Notice

The new best buy is Mansfield Building Society who pay 3.50% on 90 Day Notice and the account tracks the Bank of England Base Rate.  Given the market expectations that Base could rise further this year, this could be an excellent account for savers happy to give notice. Next best is OakNorth, who pay 3.35% for 120 Day Notice and 3.20% for 90 Day.  They are 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), Allica Bank who pay 3.20% for 180 Day (also 3.10% for 95 Day) and Hickley & Rugby Building Society whose 3.20% is paid on 120 Day Notice. BLME complete the top six - their 90 Day Notice account pays 3.14%.

1 Year Fixed

Although 1 Year rates continue to fall back, we do have a new best buy with an increased rate - Habib Bank Zurich pay 4.33% on 1 Year.  They lead a clutch of providers at 4.25% - Atom, Cahoot, Union Bank of India and Zopa all share second place. Paragon Bank are next - they pay 4.20% on both Hargreaves Lansdown's Active Savings and Raisin.  Gatehouse Bank pay the same rate ahead of Shawbrook (4.19%) and Zenith Bank (4.18%).  There's five providers at 4.15% and we think this will provide some support with our expectation that best buys will slip further back towards the 4.15% - 4.20% range.

18 Month Fixed

With the top three all pulling out, Union Bank of India are the new leaders at 4.45% before a big drop to BLME at 4.30%. Gatehouse Bank are third at 4.25% and Shawbrook are next paying 4.21%. Paragon Bank complete the top five - they pay 4.20% on both Hargreaves Lansdown's Active Savings and Raisin

2 Year Fixed

Zenith Bank lead the way at 4.53% but this is unlikely to survive the week so move quickly if this appeals. Union Bank of India pay 4.51% to take second spot ahead of BLME at 4.50%.  Investec pay 4.46% via Raisin and Shawbrook complete the top five at 4.41%.  We expect to see 2 Year rates fall to the 4.40% level early in January.

3 Year Fixed

Investec, who pay 4.55% on Raisin, share top spot with Gatehouse Bank and State Bank of India. Investec pay a slightly lower 4.50% on Hargreaves Lansdown - the same rate as Union Bank of India and Zenith Bank.  Zopa offer 4.45% before a big drop to 4.35% where Atom, Family Building Society and Tandem Bank sit.

4 Year Fixed

Gatehouse Bank top the charts at 4.55%, following a pre Christmas cut to their rate, ahead of Union Bank of India and BLME at 4.50%.  Zopa pay 4.46%, to stay just ahead of Aldermore Bank at 4.45%

5 Year Fixed 

State Bank of India lead the way at 4.65%, just ahead of Aldermore Bank who pay 4.60%.  Gatehouse Bank are third paying 4.55% ahead of seven providers at 4.50% including isbank on Raisin, Zopa and Cambridge Building Society.

About The Savings Guru

We help savers get the best deal for their money by providing unique insight in to the savings market.  We help prospective banks apply for a banking licence and we help build customer services, products and marketing for them.  We also work with existing banks and building societies to improve their savings propositions.  This  insider view of savings means we are uniquely placed to help savers.

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