ISA round up - 19th December
It was a very quiet week in the ISA market with few changes to the best buys. Virgin Money increasing their 1 Year ISA rate was one of few upward movements though with providers mostly cutting fixed rates. State Bank of India's rates continue to dominate and with their fixed rate bonds also sitting top of 1 Year and high in other categories, a reprice ahead of Christmas is surely inevitable. The Bank of England increased Base Rate by 0.50% to 3.50% which should lead to increases in easy access ISA rates but we expect there will be further cuts in fixed rate ISAs ahead of the Christmas holidays. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
Virgin Money still lead the way at 3%. Although this account is only available to Virgin Money current account holders, it is possible to switch or open a new current account with them to get this rate. Given that it beats all easy access rates, even on taxable accounts, that may be worth doing for many savers - particularly those with larger balances. There's a big drop to second where there's a four way tie. Scottish Building Society and Cynergy Bank pay 2.50% with no restrictions. Principality Building Society pay the same rate although their rate includes a 0.40% bonus for 12 months. Nationwide also pay 2.50% on their Triple Access ISA. Kent Reliance pay 2.43% and Sainsburys are at 2.40% in what is an unchanged top seven compared for the past two weeks. Expect that to change this week, in light of the Base Rate increase announced on Thursday.
Mansfield Building Society lead the way paying 3% on 180 Day Notice and 2.50% on 90 Day. Aldermore Bank are next paying 2.80% on just 30 Days' Notice. Teachers's Building Society upped their 90 Day Notice rate to 2.40% (2.45% for education professionals) to move up to third. Furness Building Society are next at 2.30% for 45 Day but this, and providers below it, are all beaten by the best easy access rates.
UBL lead the way paying a best buy 3.81%. Virgin Money move up to second as they increase their rate to 3.79% to move ahead of Shawbrook Bank at 3.78%. Gatehouse Bank at next at 3.70% ahead of OakNorth at 3.68% with Secure Trust and Coventry Building Society both pay 3.65% ahead of a cluster of providers at 3.60%.
State Bank of India remain leaders paying a huge 4.65%. They do require savers to open a non-ISA savings account or current account with them to qualify for this rate though. There's a massive drop to second place with Virgin paying 4.11% with Secure Trust Bank third at 4.05%. There are six providers at 4% including Paragon Bank, West Brom Building Society, Hodge and Charter Savings Bank.
It's a similar tale at the top of 3 Year with State Bank of India paying 4.65% to top the charts before a big drop to UBL Bank in second paying 4.25%. Secure Trust Bank and Gatehouse pay 4.20% to share joint third with Ford Money next at 4.15%.
State Bank of India also top 5 Year at 4.65% with a big drop then to West Brom Building Society at 4.25%. Gatehouse Bank are third at 4.20%, ahead of Secure Trust Bank who have cut their rate to 4.10%. Paragon and United Trust Bank pay 4.05% to complete the top seven.
Moneybox responded to the Base Rate by moving outright top at 3.50%. The Moneybox rate does include a 0.75% bonus for 12 months. Nude Finance are second at 3% but their rate comes with a £2 monthly fee. Beehive Money are third with a straight 2.30%. Skipton Building Society are fourth at 1.75%, ahead of Paragon at 1.60%, with Newcastle Building Society bringing up the rear at 1.50%. Expect others to follow Moneybox's lead in the next couple of weeks, as they respond to the Base Rate increase.