Savings round up - 15th August
The Bank of England put base rate up 0.50% to 1.75% on Thursday, the highest increase this since 1994, in a move that is only likely to further support increases on interest rates on savings. Although Union Bank of India cut its best buy rates, it's otherwise been a busy week of rate rises with the top of the tables often changing multiple times during the week. We can't see any reasons why this trend won't continue and it is only a matter of time now before easy access rates break 2% and 1 Year sees more than an outlier go above 3%. Here's our round up of the key changes and best buys in each category:
Zopa overhauled Al Rayan at the start of the week, raising its SmartSave rate to 1.81%, to become the best buy easy access account. However, Al Rayan Bank raised its rate to 1.90% on Thursday to take back top spot. There was plenty of other positive changes though with Gatehouse Bank moving up to third spot paying 1.80% and RCI Bank increasing its rate to 1.67% to move up to fifth, with Shawbrook the only non mover during the week (still 1.75%). With four of the top five changing rates during the week, we expect further movement this week as other providers respond. What will be most interesting to see is whether Chase and Marcus respond - with both now outside the top 15.
OakNorth's 120 Day (2.25%) and 95 Day (2.21%) still occupy top spot but both have had a rate hike, after Allica Bank took top spot paying 2.20% on their 95 Day Notice Account. Paragon Bank remain in third with their 120 Day Notice at 2.15%, followed by Investec's 90 Day at 2.10%.
It's all change at the top of 1 Year. No suprise that, as predicted, the Union Bank of India 3.20% rate wouldn't last - it was cut at midnight on Thursday. However, while we said it wouldn't be matched, it has helped nudge up rates behind it with OakNorth now in best buy spot paying 2.96%. However, Gatehouse Bank is second at 2.95% and with a £25 sign up bonus for new customers who sign up to the account via Raisin, using the link on our site, this will be the more rewarding option for most savers. Ford Money also pay 2.95% and Family Building Society and Secure Trust have both increased their rates to 2.90% today. With all six top spots seeing new incumbents, we expect more activity in 1 Year this week with other providers responding.
Union Bank of India also cut its top 18 Month fixed paying 3.25% rate, which is now down to 3%. It sits alongside Gatehouse Bank, Paragon Bank and Shawbrook at that rate with OakNorth tucked just behind at 2.98%.
OakNorth are the new leaders paying 3.31%, narrowly taking top spot from Cynergy Bank (3.30%). Shawbrook are third at 3.27% before a big drop to Paragon Bank who pay 3.20%, alongside Allica and last week's leader, Union Bank, who cut 0.10% off their rate on Thursday.
Cynergy are top at 3.37% with Buckinghamshire Building Society the suprise package in second place, a smidgen behind at 3.35%. OakNorth are third at 3.33% with Union Bank and Paragon completing the top five, both paying 3.30%.
OakNorth lead the way with a best buy of 3.37%, which is enough to keep United Trust Bank just behind in second spot paying 3.30%, although they are matched by Aldermore Bank who raised their rate to 3.30% during the week and Union Bank, who cut theirs.
Aldermore are the new best buy at 3.50%, knocking United Trust Bank's 3.45% down to second spot. Shawbrook share second at 3.45% with Paragon and Hodge both paying 3.40% to share fourth.
Paragon are the new best buy with their Triple Access ISA paying 1.55%, ahead of Newcastle Building Society's Triple Access. However, Scottish Building Society are also at 1.50% with no such restrictions and a £1 minimum balance. With Shawbrook, Saga and Marcus also paying 1.50%, although the latter two only via a 0.25% bonus, it's tight at the top and we expect to see more changes this week.
There's no change to notice ISAs with Teacher's Building Society still leading the way with their 90 Day Notice paying 1.45% (with a higher rate of 1.50% for teachers and education professionals) and previous long term leader, Aldemore Bank and their 30 Day Notice at 1.40%, in second. Mansfield Building Society are third at 1.20%. With easy access ISA rates improving, and six providers paying 1.50% or more with no notice, there's little incentive to look at notice ISAs currently.
The top five rates have all changed this week with Virgin Money and Secure Trust Bank the new leaders, both paying 2.40%. Shawbrook Bank (2.37%) and Paragon (2.36%) can barely be separated behind them with a small gap back to UBL in fifth at 2.31%. However, such stiff competition in this category suggests to us that there will be more movement during the week and almost certainly a new best buy come next Monday.
We've seen a 0.10% increase in the best 2 Year rates with Shawbrook and Secure Trust Bank leading the way at 2.80% and Paragon up to third at 2.75%. Aldermore Bank improved their rate to 2.70% where they have been joined by UBL. Leeds Building Society are also worth a mention - although their rate is only 2.65%, their fixed rate is for a shorter term of 16 months, which is ahead of the best 1 Year rates.
Secure Trust Bank still top 3 Year but have had to improve their rate to 2.90% to do so, with Shawbrook next at 2.82%, pushing previous leader Aldermore Bank (2.80%) down to third where they have now been matched by Paragon Bank and UBL too.
There's a new leader on 5 Year with West Brom Building Society paying 3.10% to sit clear of Secure Trust Bank at 3%. Shawbrook are third at 2.95% with Paragon further back at 2.85%. There's a drop down to 2.80% for fifth and these leaders look too strung out - expect further changes here this week as competitors fill the gaps.