Savings round up - 2nd May
01/05/2023
Easy access rates and 1 Year Fixed rates both jumped strongly on the week as the financial markets are now pricing in much higher predictions for Base Rate for the rest of the year. Market expectations are now that Base Rate will go to at least 4.50% in May and move up again in June. Given this, it is likely that easy access rates will increase further this year but we can only see room for higher fixed rates if expectations for Base Rate go much higher. Here's our round up of the best buys and key changes from the savings market:
It's all change at the top of the easy access best buys with six of the top seven increasing rates. Chip lead the way with a best buy 3.71% - the mobile app provider responding to Shawbrook's move to the summit paying 3.65% earlier last week. Aldermore Bank are third with their Double Access Account paying 3.55%. Investec are up to fourth with an improved rate of 3.51% on its Online Saver. Secure Trust Bank are just behind paying 3.50% and Charter Savings also improved their rate - to 3.45%. UBL are paying 3.41% via Raisin ahead of GB Bank, also via Raisin, paying 3.40%. Aldermore Bank's unrestricted easy access accounts improves to 3.40%, moving alongside Family Building Society's Online Saver. We believe rates have improved because providers are anticipating that the Bank of England will increase Base Rate, next Thursday, to 4.50% and they are moving in expectation of this.
The top three remain unchanged but there's plenty of movement behind them. Oxbury Bank lead the way paying 4.05% on their 180 Day Notice. They also pay 3.90% on 120 Day and 3.80% 95 Day. Market Harborough Building Society and Allica Bank still pay 4% for 180 Days' Notice. OakNorth are up to fourth - increasing their 120 Day rate to 3.93%. New entrant, StreamBank are next with the best 90 Day Notice rate - 3.85%. BLME pay the same rate but savers need £10,000 to open their 90 Day account.
Shawbrook and Secure Trust lead the way - both paying 4.30% for 9 Months Fixed - ahead of Turkish private bank isbank which pays 4.25% for 9 Months via Raisin as does mobile app only provider Atom. Over on Hargreaves Lansdown's Active Savings, Aldermore Bank pay 4.22% and Kent Reliance pay 4.20% for 9 Months Fixed.
Allica Bank pay the best 6 Month Fixed at 4.16%, just ahead of Atom at 4.15%. Kent Reliance pay 4.10% via Hargreaves Lansdown with Monument Bank at 4.03%.
Rates soared again last week as markets are now predicting that Base Rate will go higher than previously expected in the next 12 months, which has pushed up swap rates, which banks use to help price their fixed term deposits. This is what is causing an unusual disparity where 1 Year Fixed Rates pay more than longer term ones. Smart Save are the new best buy at 4.82%, after they responded late on Friday to Vanquis Bank's move to the summit at 4.81%. United Trust Bank are next at 4.75% alongside Al Rayan Bank and Oxbury. Charter Savings Bank pays 4.74% via Hargreaves Lansdown and direct, as does OakNorth, with DF Capital just behind at 4.73%. Although there's only 0.12% between the top 13 providers, we don't antipate significant moves up from these prices. These rates are pricing in a Base Rate of 4.75% - 5% and we think that's unlikely, therefore we can only see further increases if it looks like Base could go to 5%+ this year.
Al Rayan lead the way with a best buy of 4.80% via Raisin and direct to narrowly hold off United Trust Bank's 15 Month Fixed at 4.79%. DF Capital came back in to the market last week paying 4.70%, ahead of Kent Reliance at 4.67% via Hargreaves Lansdown before a big drop down in rates.
Al Rayan are top but now at 4.85% via Raisin and direct. The best non-Sharia rate is 4.80% from United Trust Bank and Oxbury. Charter Savings pay 4.76%, Vanquis pay 4.75% and Smart Save pay 4.72%. Allica are at 4.71% ahead of a cluser at 4.70% including Investec Bank, who pay 4.70% via Raisin and Close who pay the same rate via Hargreaves Lansdown.
Al Rayan are way out in front on 3 Year paying 4.90% via Raisin and direct with Vanquis a distant second at 4.75%. SmartSave are next at 4.71% ahead of United Trust Bank also upped their rate to 4.70%. Close also pay 4.70% and DF Capital are back in the market paying 4.67%.
United Trust Bank are on top paying 4.60%. OakNorth and Gatehouse Bank continue to share second spot paying 4.52% with Vanquis up to fourth with an improved rate of 4.50%. BLME pay the same rate to keep ahead of Aldermore Bank at 4.45%. Zopa were the only other mover of note - up to 4.42% late on Friday.
United Trust Bank are the new best buy at 4.71%, ahead of Tandem Bank who move up to second with an improved rate of 4.70%. Atom are third at 4.65% with Monument Bank next paying 4.60%. Hodge (4.54%), OakNorth (4.53%) and Gatehouse (4.52%) are the only other providers paying north of 4.50%.