Savings round up - 27th March
26/03/2023
The Bank of England increased Base Rate to 4.25% in what was an excellent week for savers. Easy access providers announced increases with Aldermore, Atom, Chase, Coventry Building Society and Kroo all on the move or poised for increases. Short term fixed rates also increased sharply with best buys up to 4.13% and although the best 1 Year rate is still 4.50%, there were several providers increasing rates behind that. We also saw sharp uplifts for Notice accounts with a best buy of 4%. Expect more easy access moves this week, as providers respond to Thursday's Base Rate increase, but we suspect that fixed rates are unlikely to go much further than these points. Here's our round up of the best buys and key changes from the savings market:
Chip remain best buy at 3.40% with Kroo Bank poised to move to 3.33% when their rate goes up on 1st April, although existing savers will benefit from the enhanced rate. Coventry Building Society upped their limited access (six withdrawals before an interest penalty for further ones) to 3.25% to move alongside Cynergy Bank and Paragon Bank - the former includes a 0.15% bonus for 12 months while Paragon's rate is restricted to three withdrawals per year or a sharp drop in interest rate. Al Rayan at 3.22% and Zopa at 3.21% are next ahead of Atom Bank, who upped their rate to 3.20% to move alongside Gatehouse Bank. Charter Savings also increased their rate from 3.05% to 3.18% as did Aldermore Bank, whose Double Access saver now pays 3.10%, to move alongside Ford Money's unrestricted 3.10%. Chase also announced plans to move their rate up to 3.10% on 3rd April.
It's all change at the top of notice accounts. Market Harborough Building Society lead the way with a massive 4%, although this does require 180 Days Notice. Cynergy Bank are next paying 3.65% for 120 Day or 3.60% for 95 Day. There's a three way tie for third at 3.55% with Investec's 90 Day, Close Brothers 95 Day and United Trust Bank's 200 Days Notice. QIB's 95 Day Notice pays 3.50% as does Melton Building Society and Allica Bank - but both want 180 Days Notice, although Allica do pay who pay 3.40% for 95 Days, as do Secure Trust Bank who want 120 Days Notice for their 3.50%.
Short term fixed rates also surged this week with the best 9 Month Fixed on Hargreaves Lansdown's Active Savings - United Trust Bank paying a top rate of 4.13% and Kent Reliance paying 4.10%. Shawbrook pay the best direct rate - 4% for 9 Months. Allica Bank lead the way on 6 Month Fixed paying a huge 4% to move ahead of Monument Bank at 3.85% and Zenith Bank on Raisin at the same rate.
Al Rayan Bank still lead the way at 4.50% but the chasing pack have closed. Cynergy Bank pay 4.45%, SmartSave are at 4.44% and OakNorth at 4.43%. United Trust Bank increased its rate to 4.38% ahead of a four way tie at 4.35% with Gatehouse Bank, Close Brothers, new bank GB Bank and Investec. Allica Bank are at 4.34% just ahead of Charter Savings Bank at 4.33% on Hargreaves Lansdown's Active Savings or direct.
Al Rayan still lead the way on 18 Months at 4.57% ahead of Charter Savings Bank at 4.42% via Hargreaves Lansdown following their uplift last week. United Trust Bank's 15 Month was also on the move - up to 4.40% to move alongside OakNorth's 18 Month Fixed with Kent Reliance a whisker behind at 4.39% on Hargreaves Lansdown.
Al Rayan remain top paying 4.62% with Cynergy Bank second at 4.50%, after they increased their rate. United Trust Bank was also on the move - up to third paying 4.47%. This moves them alongside Oxbury Bank and Charter Savings with OakNorth just behind at 4.46%, ahead of a four way tie at 4.45%, which is paid by Atom, Close Brothers, GB Bank and Vanquis.
Al Rayan complete a clean sweep of 1-3 Year with a best buy of 4.68%. They are well clear of Cynergy Bank at 4.55% and OakNorth at 4.51%. Tandem Bank pay 4.50% on Raisin which is matched by United Trust Bank, who upped to 4.50%, as did Close Brothers. There's three providers at 4.45% - Atom, Vanquis and Zenith Bank.
United Trust Bank are the new leaders paying 4.55%, to move above OakNorth at 4.52% before a big drop to Gatehouse Bank in third at 4.40%. Rates drop to 4.25% beyond this - there's much better value on 3 and 5 Year Fixed to consider going to that level.
Tandem Bank lead the way at 4.60% but United Trust Bank have moved to within a whisker of them at 4.58%. Close Brothers also increased their rate - up to 4.55%, to move ahead of OakNorth at 4.53%. Monument Bank are next at 4.51% and isbank (via Raisin) pay 4.50%. Hampshire Trust Bank are next at 4.45%.