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Savings round up - 8th January

Best buy fixed rates have largely held up this week, but the chasing pack are cutting so we expect to see further falls this week. 4 and 5 Year were the categories which saw headline cuts and it's likely they'll see further reductions this week as the best buy providers are smaller providers who have limited appetite for inflows and won't want the volumes that come with a best buy position. There's better news for savers on easy access and notice accounts where rates are still holding up but, the more likelihood there is of a Base Rate cut in the spring, the greater the chances they'll reduce too. Expect to see rates ease back once the top easy access rate (from NatWest's Ulster Bank) goes. Here's our round up of the best buys and key changes from the savings market:

Easy Access

Ulster Bank still lead the way paying 5.20%. There's a small drop to Cahoot at 5.12% and Leeds Building Society at 5.10%. Virgin Money and Charter Savings pay 5.07% - but the Virgin rate falls to 2% if more than three withdrawals per year are made whereas there are no restrictions on the Charter rate. Kent Reliance pay 5.06% and Close Brothers, the only positive mover in the top 10 last week, are up to 5.05%. Metro Bank is offering 5.22% but a huge proportion of this (3.46%) is a 12 month bonus and, for this reason, we exclude it from our tables. 


United Trust Bank offer a best buy 5.58% on 200 Day Notice and 5.40% on 100 Day ahead of Melton Building Society, who pay 5.50% for 180 Day's Notice. Buckinghamshire Building Society offer 5.45% for 195 Day's Notice and Monument Bank pay 5.41% for 60 Days. QIB Bank pay 5.40% for 95 Day's Notice, 5.35% for 60 Day's and 5.30% for 31 Day's via Raisin.

Up to 1 Year Fixed

National Bank of Egypt pay a best buy 5.08% ahead of Charter Savings Bank paying 5.05% via Hargreaves Lansdown's Active Savings - however, this also comes with cashback of up to £100 for new savers which could provide a better overall return. Next best - and the top direct rate - is United Trust Bank's 4.98%.

Emirates Bank pays a best buy 5.17% via Hargreaves Lansdown's Active Savings platform. There's cashback on this account of up to £100 too, which makes it highly attractive. Next best is Cynergy Bank's 5.12%, narrowly ahead of National Bank of Egypt 5.11% via Raisin, and Sainsbury's Bank's 5.11% via Hargreaves Lansdown's Active Savings platform.

1 Year Fixed

Al Rayan Bank still lead the way at 5.50% alongside Indian bank ICICI. However, much of the chasing pack have gone with a big drop then to Investec at 5.30% and SmartSave Bank at 5.27%. StreamBank pay 5.20% as do Secure Trust Bank, who cut their rate last week. There's a trio of providers at 5.15% including Investec via Raisin, Habib Zurich and BLME, following their rate cut. We expect to see rates consolidate around 5.15% - 5.20% this month as providers factor in expectations that the Bank of England will cut Base Rate this spring. 

18 Month Fixed

United Trust Bank lead the way with its 15 Month Bond paying 5.10%. Union Bank of India are next at 5.10% following another rate cut with Tesco Bank and Al Rayan both paying 5%. Gatehouse Bank pay 4.90% and Cynergy Bank pay 4.85% on their 15 Month Fixed Rate.

2 Year Fixed

Union Bank of India still lead the way at 5.15% with Al Rayan Bank and Investec tied second with both paying 5.05%. Secure Trust Bank pay 5% having cut their rate last week, ahead of Paragon Bank at 4.95% via Raisin and fellow Raisin provider, Bank of Ceylon who are also at 4.95%. United Trust Bank and Close Brothers also pay 4.95% with Dudley Building Society and Zenith Bank completing the top 10 at 4.90%. We expect further cuts this week with our expectation that most of the top 10 rates will be lower this time next week. 

3 Year Fixed

Al Rayan Bank pay a best buy 4.95% with a big drop then to Castle Trust Bank at 4.80%, following several cuts and withdrawals. Despite their 10bps cut, Zenith Bank are third at 4.70% alongside United Trust Bank with the trio of Gatehouse Bank, Tesco and Close Brothers tied at 4.60%. There's a cluster of six providers at 4.50% and we expect this is where 3 Year rates will consolidate at during the month.

4 Year Fixed

Bank of Ceylon pay a best buy 4.55% via Raisin with fellow Raisin provider, isbank, paying 4.50%. Vanquis and Zopa Bank are tied for third at 4.40% with United Trust Bank and BLME offering 4.30%.

5 Year Fixed 

Bank of Ceylon pay a best buy 4.55% via Raisin after both last week's top two cut rates. isbank are next paying 4.50% via Raisin before a big drop to Close Brothers at 4.35%. Five providers pay 4.30% - United Trust Bank, Zopa, BLME, Tesco and Vanquis. Only nine providers pay more than 4.25% as markets, and with markets forecasting Base to drop below 3.50% by 2029, expect further falls.

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