Savings round up 9th January
08/01/2023
It's been a week of further cuts in best buy rates with the best easy access account, notice, 18 Month and 2 Year Fixed all falling. There's more to come today too with the best 5 Year about to follow suit. In better news, we saw a slight uplift in the 3 Year best buy and there's been further improvements in easy access rates more generally. With the Bank of England expect to increase Base Rate further on 2nd February, we believe easy access rates will rise further this month but the likelihood is there will be more falls in longer term rates as expectations are that Base Rate will peak in Q2 this year and at a level much lower than previously predicted. Here's our round up of the best buys and key changes from the savings market:
The big news of the week was Coventry Building Society pulling their Limited Access Saver late on Thursday night. The rate on the account increased to a market leading 3.25% on Friday, but only for existing savers. Hopefully many of you took advantage of our heads up on the rate increase in last week's round up and got in before the account was pulled. There is still a way to get a 3% - mobile app Chip are paying a 3% return. Balances are protected up to £85,000 via the Financial Services Compensation Scheme too. The account official pays 0% interest but Chip are paying a 3% bonus which is calculated daily and added to the account balance monthly.
Elsewhere, Zopa lead the way at 2.86% with Al Rayan next best at 2.81%. Chorley Building Society's, which permits six withdrawals per annum, pays 2.75% alongside Cynergy Bank, whose 2.75% rate includes a 0.15% bonus for 12 months. Chase are next at 2.70%, up from 2.10%, following their increase last Wednesday. Ford Money, paying 2.65% on their Flexible Saver, came back in to the market on Friday. They move alongside Skipton Building Society who pay the same rate on their Triple Access Saver.
OakNorth, who pay 3.35% for 120 Day Notice and 3.20% for 90 Day, lead the way. They are ahead of BLME who upped their 90 Day Notice rate to 3.24% last week, to move up to second. There's a three way tie for third. United Trust Bank pay 3.20% for their 200 Day Notice (they also pay 2.90% on 100 Day and 2.50% on 40 Day). Allica Bank also pay 3.20% but for 180 Day (and 3.10% for 95 Day) and Hickley & Rugby Building Society's 3.20% is paid on 120 Day Notice.
Habib Bank Zurich still lead the way at 4.33% on 1 Year but we expect this to be withdrawn or cut early this week. Only two providers remain in second at 4.25% - Atom and Cahoot - following cuts by Union Bank of India and Zopa. Paragon Bank are next - they pay 4.20% on both Hargreaves Lansdown's Active Savings and Raisin. Gatehouse Bank and Close also pay 4.20%, with the latter coming back in to the market last week. Next is Shawbrook at 4.19% with six providers paying 4.15%, which will provide some support to this price point. We still expect 1 Year best buy rates to fall back to the range of 4.15% - 4.20% this month.
With last week's leader, Union Bank of India, cutting its rate we have a tie at the top. Close Brothers pay 4.30% via Hargreaves Lansdown's Active Savings and Sharia provider, BLME, pay the same rate direct. Fellow Sharia bank, Gatehouse, is next at 4.25% with Shawbrook fourth paying 4.21%. Paragon complete the top five paying 4.20% via Hargreaves Lansdown's Active Savings and also on Raisin.
With last week's top two both cutting rates, the new leader is Smart Save paying 4.52%. Next are BLME at 4.50% with Shawbrook third at 4.41% just ahead of Zenith paying 4.40%, Investec at the same rate via Hargreaves Lansdown's Active Savings and Gatehouse Bank at 4.40% direct. Atom have been joined at 4.35% by Union Bank of India, following their cut.
Smart Save also lead the way on 3 Year paying a best buy 4.56%. Close Brothers, who rejoined the market, share second with Gatehouse at 4.55%. Investec, who pay 4.50% on Raisin and Hargreaves Lansdown's Active Savings are next alongside BLME. There's a big drop then to 4.40% with Zenith, via Raisin, and Union Bank of India paying this rate.
Gatehouse Bank top the charts at 4.55% ahead of BLME at 4.50%. Aldermore Bank are third at 4.45% alongside Union Bank of India with Zopa completing the top five at 4.40%.
Aldermore Bank lead the way at 4.60%, but only until 4.30pm on Monday, when the rate falls to 4.40% so move quickly to apply if this appeals. Gatehouse Bank and Close Brothers share third at 4.55%. There's a five way tie at 4.50% including isbank on Raisin, Cambridge and Monmouthshire Building Society's, Tandem and BLME. Zopa and Union Bank of India are next at 4.45% with both cutting rates last week.