Savings round up - 23rd January
22/01/2023
There's been plenty of good news for easy access savers with several rates increasing and a best buy of 3.35% for those with up to £5,000 to save! We expect more rises this week - with the Bank of England due to announce its latest decision on Base Rate on 2nd February the market is expecting another increase. We expect that some banks will move in anticipation of this. The news wasn't as good for fixed rate savers with rates falling again and still more to come, in our opinion. With several providers launching shorter term fixed rate bonds at very competitive rates, for terms of six or nine months typically, we've started coverage of these here. Here's our round up of the best buys and key changes from the savings market:
We have a new best buy and several upwards movements at the top of our charts! There's a few 3% (or more) deals available - savers living near a Monmouthshire Building Society branch can get 3% on £25,000+ if they open an account in branch. Yorkshire Building Society savers can get 3.35% on the first £5,000 with 2.85% on amounts over that, which is very attractive for savers with smaller balances. 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.
Cynergy are the new leaders though, having boosted their rate to 2.90%, although this includes a 0.15% bonus for 12 months. Sainsburys are up to second having improved their Double Access rate to 2.87% to move above Zopa who drop to third at 2.86%. Coventry Building Society are 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. They've been joined by Paragon Bank's Triple Access Saver and Yorkshire Building Society's Internet Saver pays a straight 2.85% on balances of £10,000 or more. Al Rayan are next at 2.81%. Tandem are the other significant mover adding a 0.20% bonus for 12 months to their 2.55% rate to pay 2.75%. Ford Money remain popular paying 2.65% on their Flexible Saver.
It's an unchanged top five this week. 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. OakNorth, who pay 3.35% for 120 Day Notice and 3.20% for 90 Day, remain third ahead of BLME who pay 3.24% for 90 Day Notice and Investec, whose 90 Day Notice rate is 3.22%. The only significant movement was Close upping their 95 Day Notice rate to 3.15%.
Habib Bank Zurich still continue to lead the way at 4.33% on 1 Year - much to our surpise as everyone behind them falls back. The second best rate is now 4.20% with just Close and Vanquis Bank paying that as the other four of last week's top five providers all cut or withdraw. There's seven providers at 4.15%, which is where we said we felt the market was heading in last week's round up. Ford Money pay 4.15% on a minimum of just £500. Turkish state owned Ziraat Bank also pay 4.15% via Raisin. Atom are at the same rate, following their 0.10% cut as are BLME, Hodge, Investec and Secure Trust Bank.
With Charter Savings Bank cutting their rate late Thursday evening, there's a three way tie at the top with a best buy rate of 4.25%. Close Brothers pay 4.25% via Hargreaves Lansdown's Active Savings, QIB, also pay 4.25% via Raisin as do Secure Trust Bank. BLME pay 4.20% to take fourth with Brown Shipley completing the top five at 4.19%. Charter are next at 4.16% with Coventry Building Society entering the 18 month tables for the first time paying 4.10%.
Having cut their 1 Year rate, Atom increased their 2 Year rate to 4.45% and are the new leaders. Next up is Investec, who pay 4.40% via Hargreaves Lansdown's Active Savings, and Vanquis Bank. SmartSave are fourth at 4.36% following their rate cut, ahead of BLME, Union Bank of India and Close Brothers who all pay 4.35%.
SmartSave 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, share third spot. Gatehouse Bank is next at 4.45%, alongside Atom. Zenith, via Raisin, pay 4.40% alongside both Secure Trust Bank and Union Bank of India.
Gatehouse Bank share the summit with Union Bank of India at 4.45%. They are both ahead Aldermore Bank at 4.40% with Zopa and Vanquis Bank, both at 4.30%, completing the top five.
Close Brothers lead the way paying 4.55%, ahead of isbank who pay 4.50% on Raisin, and Monmouthshire Building Society - although the latter has now restricted applications to branch only. Atom, Gatehouse and Union Bank of India pay 4.45% to keep ahead of Aldermore Bank at 4.40% and Ford Money, also at 4.40%.