Savings round up - 14th August
Easy access rates have soared with several providers increasing rates following the Bank of England Base Rate increase on 3rd August. Five providers went above last week's best buy of 4.65% with Tandem going to 5%, in a shock move, which has seen others close up behind it to 4.81%. There's little room for further rises from here and we think it is unlikely that Tandem will be topped. They also paused their rate over the weekend but came back on this morning, which makes us wonder how sustainable their rate is. Fixed rates have seen changes with several providers cutting rates but a few, like Hodge and Recognise, bucking that trend. Fixed rate pricing above 6% looks unsustainable but, for now, there's some competition keeping it there. We do expect rates to drop back though, rather than upward moves from these price points. Here's our round up of the best buys and key changes from the savings market from the past week:
Tandem are the new leaders with their easy access account paying 5%, although savers get an underlying rate of 4.65% with a 0.35% bonus for 12 months. To get the bonus, savers need to apply in the app. Monument Bank pay a straight 4.81% via their app based account. Agricultural focused Oxbury Bank are third offering 4.80% ahead of Paragon Bank's Double Access account which increased to 4.75% on Friday. Shawbrook Bank pay 4.68% and Secure Trust Bank are up to 4.65%. Aldermore Bank's Double Access Account paying 4.60% is next, the 4.60% rate is payable for two withdrawals with a third triggering the rate to cut to 1%. Leeds, Saffron and Loughborough Building Societies all pay 4.60% also. Hampshire Trust Bank pay 4.55%.
Notice accounts responded to the Base Rate change with Oxbury moving top paying 5.59% on 180 Day and 5.53% on 120 Day. Dudley Building Society drop to joint second - their 120 Day Notice and 90 Day paying 5.45% and 5.35% respectively, with Cynergy also paying 5.45% on 120 Day and 5.40% on 95 Day. BLME pay 5.35% on their 90 Day Notice Account ahead of DF Capital at 5.35% on 120 Days and 5.30% 90 Days. QIB Bank pay 5.33% on 95 Day Notice, after their increase, and RCI Bank are up to 5.30% for 95 Day Notice after their rate rise.
Charter Savings Bank lead the way paying 5.65% on Hargreaves Lansdown's Active Savings platform for 9 Months Fixed. They are a whisker ahead of Hampshire Trust Bank paying 5.64% for 9 Months. FCMB pay 5.59% for the same term via Raisin.
Cynergy top the 6 Month Fixed tables paying 5.56%, a slither ahead of Charter Savings Bank offering 5.55% via Hargreaves Lansdown and Secure Trust Bank paying the same rate direct, with Monument Bank paying 5.50%.
It's all change at the top of 1 Year with Secure Trust paying a best buy 6.05%, as they buck the trend by increasing their rate, to move ahead of Cynergy and OakNorth who share second spot paying 6.04%. SmartSave drop to 6.03% with Hodge up to fifth following their increase to 6.01%. There are 12 providers at 6% including Monument Bank, National Bank of Egypt, United Trust Bank and Gatehouse Bank via Raisin. However, with swap rates, which guide where markets think Base is going and which banks use to help price savings, now down below 5.75% for 1 Year it doesn't look sustainable that prices will stay above 6%.
OakNorth and Ford Money still lead the way paying 6.05% for 18 Months, just ahead of Hampshire Trust Bank's 6.03% for the same term. Gatehouse Bank, who pay 6% direct and via Raisin, share fifth alongside United Trust Bank's 15 Month Fixed paying 6%, BLME, Union Bank of India and OakNorth's 15 Month Fixed.
Recognise Bank top the tables paying 6.10% ahead of Cynergy at 6.06% and Hampshire Trust Bank at 6.05%. Ford Money, Secure Trust Bank and Ikano Bank all pay 6.05% too with Hodge increasing their rate to 6.04% to tuck in behind. Next is Aldermore Bank at 6% alongside RCI Bank who also pay 6%.
Recognise and Secure Trust share top spot paying 6.05%, ahead of Cynergy at 6.01% and RCI Bank who pay 6%, alongside BLME. OakNorth are next paying 5.96% ahead of five providers at 5.95% - Hampshire Trust Bank pay 5.95% as do United Trust Bank, FirstSave, Hodge and Ikano.
Cynergy pay a best buy 5.81% to nip ahead of long time leader RCI Bank who pay 5.80%. Hampshire Trust Bank's 5.75% takes third place alongside United Trust Bank, Hodge and Recognise Bank. There's a drop then to Tesco Bank at 5.65%.