Savings round up - 6th February

The Bank of England's decision to hike Base Rate to 4% on Thursday is good news for easy access savers with best buy rates rising 0.13% in the 24 hours after, and with further to go we expect.  There's likely to be more increases this week as providers digest the news and react to those competitors who have moved early.  Fixed rate best buys continue to fall back though, as the longer term outlook is for Base to peak soon and rates to fall back.  However, the Base increase is likely to provide some support to 1 Year Fixed pricing at least, as is the decision by NS&I to come back in to the market this week with 1 Year rates at 4%.  Here's our round up of the best buys and key changes from the savings market:

Easy Access

Five providers have moved ahead, or announced moves, above last week's best buys following Thursday's Base Rate increase.  Tandem and Newcastle Building Society are joint leaders but both accounts have restrictions.  Tandem's 3.05% comprises a 0.20% bonus for 12 months which has to be applied for within their mobile app - although this is one simple click.  Newcastle Building Society's 3.05% is restricted to three withdrawals per year, otherwise the rate drops to 1.75%.  Chase have announced their savings rate is going to 3% but savers have to wait until 13th February for this.  Atom Bank are the final mover - increasing their app only rate to 2.95%. Last weeks' leaders, Shawbrook and Sainsbury's Bank, complete the top five at 2.92%.

Chip, the savings app, are paying a 3% return currently but this will increas to 3.04% on 11th February.  Balances are currently protected up to £85,000 via the Financial Services Compensation Scheme with the account officially paying 0% interest and Chip paying a 3% bonus, which is calculated daily and added to the account balance monthly.  However, from 11th February, this will change to 3.04% with the full rate being paid as monthly interest.


Two significant changes this week - Hinckley & Rugby pull their best buy 3.60% rate which promotes Furness Building Society, who pay 3.50% for 120 Day Notice, and Allica Bank, who pay the same rate for 180 Day Notice, to best buys.  The other big move is from Stafford Railway Building Society who increased their 90 Day Notice rate to 3.40% during the week. OakNorth, who pay 3.35% for 120 Day Notice and 3.20% for 90 Day, are next ahead of BLME who pay 3.24% for 90 Day Notice and Investec, whose 90 Day Notice rate is 3.22%. 

Up to 1 Year Fixed

ICICI Bank who pay 3.60% via Hargreaves Lansdown and Atom Bank lead the way on short term fixed rates - both paying 3.60% for 9 months fixed.  Zenith Bank pay the best 6 month rate - 3.50% - just ahead of Atom Bank at 3.45%.

1 Year Fixed

SmartSave still lead the way but at a lower rate of 4.17%, having dropped to 4.16% then increased in response to Charter Savings Bank raising their rate to 4.16%.  Third spot sees a four way tie with Atom, Investec and Secure Trust all continuing to pay 4.15%, but they have been joined by Close Brothers, who upped their rate to this mark last week.  Hodge, Gatehouse Bank and Vanquis are all tied at 4.10%. With the Base Rate increase and NS&I entering the market at 4%, we expect 1 Year best buys to hold around 4.10-4.15% for the short term.

18 Month Fixed

Secure Trust Bank lead the way at 4.25%.  Close Brothers are next paying 4.20% via Hargreaves Lansdown, the same rate as Charter Savings Bank.  Gatehouse pay 4.15% ahead of Coventry Building Society, Union Bank of India and BLME all at 4.10%.

2 Year Fixed

Several rate reductions mean a much changed line up at the top of 2 Year Fixed.  Close Brothers and Union Bank of India now lead the way - both paying 4.35%.  Gatehouse Bank and Secure Trust Bank share third spot - both paying 4.30%. Ford Money complete the top five at 4.25% ahead of Aldermore Bank at 4.20% and RCI Bank also at 4.20%.  

3 Year Fixed 

Gatehouse are the new best buy at 4.45% ahead of a trio of providers at 4.40% - Close Brothers, Secure Trust Bank and Union Bank of India.  Zenith complete the top five at 4.30% ahead of Aldermore Bank at 4.25%, who are alongside UBL.

4 Year Fixed

Gatehouse Bank share the summit with Union Bank of India at 4.45%. They are both ahead of Aldermore Bank at 4.25%, who are alongside UBL Bank with RCI Bank completing the top five at 4.22%.

5 Year Fixed 

There's a three way tie at the top of 5 Year Fixed with Close Brothers, Gatehouse and Union Bank of India paying 4.45% to keep ahead of Ford Money at 4.40%.  Tandem Bank complete the top five at 4.30% ahead of RCI Bank and Aldermore Bank at 4.25%

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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