Savings round up - 16th January

It's been a mixed week in the savings market.  There's a couple of options at 3% for savers (three if you include Yorkshire Building Society, but that is limited to just £5,000) but otherwise Zopa continue to lead the way, but the chasing pack are closing the gap.  Notice rates have increased as two building societies lead the way at the summit and there's new names at the top of 18 Month Fixed and 2 Year.  However, longer term fixed rates continue to fall back and there's more cuts in fixed rate bonds than increases. Here's our round up of the best buys and key changes from the savings market:

Easy Access

There's been plenty of movement in the easy access best buys this week, although nobody has dislodged Zopa yet.  Savers living near a Monmouthshire Building Society branch can get 3% on £25,000+ if they open an account in branch. Chip, the savings app, 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.

Zopa lead the way at 2.86% but Coventry Building Society are back at 2.85% with a new issue (7) of their Limited Access Saver which permits six penalty withdrawals per year before charging an interest penalty for further ones.  Next is Al Rayan 2.81% ahead of Chorley Building Society, Cynergy and Sainsburys Bank, following a rate increase from the supermarket provider.  There are catches with all though - Chorley permits six withdrawals per annum for its 2.75%, Cynergy Bank's includes a 0.15% bonus for 12 months and Sainsburys only allow two free withdrawals per annum. Chase is next at 2.70% followed by Ford Money, paying 2.65% on their Flexible Saver.

Notice

Two building societies are battling it out at the top of the notice best buys.  Hinckley & Rugby lead the way paying 3.60% on their 120 Day Notice account, although this can only be opened in branch or by post.  Furness Building Society pay 3.50% for the same notice period and with the same opening restrictions, but the account can be managed online once opened.  Last week's leaders, OakNorth, who pay 3.35% for 120 Day Notice and 3.20% for 90 Day, drop to third. They are ahead of BLME who pay 3.24% for 90 Day Notice and Investec, who increased their 90 Day Notice rate to 3.22% yesterday.

1 Year Fixed

Habib Bank Zurich still lead the way at 4.33% on 1 Year - we expected this to be withdrawn or cut early last week, and with rates falling behind them, this must surely happen this week.  SmartSave have come back into the market at 4.26% to take second spot but Cahoot have gone leaving just Atom at 4.25% in third.  Charter Savings re-joined the market at 4.24% to take fourth with Paragon Bank next - they pay 4.20% on both Hargreaves Lansdown's Active Savings and Raisin.  Gatehouse Bank also pay 4.20% with a drop then to 4.15% where four providers provide some support for this price point, and where we feel 1 Year best buys are heading back towards.

18 Month Fixed

Some good news in the 18 Month Fixed category where Charter Savings Bank have come back into the market with a best buy 4.34% rate.  This is available on Hargreaves Lansdown's Active Savings and direct.  QIB, via Raisin, are second at 4.25% alongside Secure Trust Bank.  Paragon Bank are next at 4.20% which they pay via both Hargreaves Lansdown's Active Savings and Raisin.  BLME also pay 4.20% as do Close Brothers via Hargreaves Lansdown's Active Savings.

2 Year Fixed

Ford Money are the new leaders, coming back to market paying 4.50%.  Last week's leaders, SmartSave, cut their rate to 4.41% to drop to second spot just ahead of Zenith paying 4.40%, and Vanquis Bank, who increased their rate to 4.40% on Friday.  Investec pay 4.35% via Hargreaves Lansdown's Active Savings, alongside app only provider Atom, BLME, Close Brothers and Union Bank of India.

3 Year Fixed

Smart Save remain top of 3 Year paying a best buy 4.56%, just ahead of Close Brothers at 4.55%. Investec, who pay 4.50% on Raisin and Vanquis, who increased their rate on Friday, share third spot.  Gatehouse Bank is next at 4.45% following their rate cuts last week. Zenith, via Raisin, pay 4.40% alongside both Secure Trust Bank and Union Bank of India.

4 Year Fixed

Gatehouse Bank still top the charts but at a reduced rate of 4.45% and share the summit with Union Bank of India.  They are both ahead Aldermore Bank at 4.40% and Zopa, who drop to 4.30% after their rate cut on Friday. 

5 Year Fixed 

Ford Money and Close Brothers share top spot - both paying 4.55%.  There's a three-way tie at 4.50% with isbank on Raisin, Cambridge and Monmouthshire Building Society's.  Similarly, Gatehouse Bank, Melton Building Society and Union Bank of India all pay 4.45% ahead of last week's leader, Aldermore Bank, now paying 4.40%.

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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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