Savings round up - 4th December
03/12/2023
Fixed rates continue to fall back with only one provider paying above 5.70% and nobody paying above 5% for 4 or 5 Years. All bar one of last week's top ten providers on 3 Year have cut or withdrawn too as a domino effect ripples through the market. With it looking almost certain that Base Rate has peaked at 5.25% and the first cut on the cards in 2024, there is little justification for the current rates on offer so we expect there will be further falls in the run up to the next Base Rate decision on 14th December. Easy access rates continue to hold up and there's now only 0.60% between the best easy access and fixed rates. Here's our round up of the best buys and key changes from the savings market from the past week:
Ulster Bank still lead the way paying 5.20% but Paragon Bank have closed the gap with their Double Access Account now paying an improved 5.16%. However, the rate is slashed to just 1.50% if more than two withdrawals are made. 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. Hampshire Trust Bank pay a straight forward 5.15% with no restrictions as do Close Brothers, but they do want a hefty £10,000 minimum balance. Virgin Money and Cahoot both pay 5.12% - the Virgin account drops to 2% if more than three withdrawals per year are made whereas the Cahoot one has no restrictions. Charter Savings Bank pay 5.07% and Ratesetter pay 5.06% via Hargreaves Lansdown's Active Savings platform, the same rate as Kent Reliance pay.
United Trust Bank offer a best buy 5.58% on 200 Day Notice and 5.40% on 100 Day. Oxbury Bank pay 5.53% for 120 Day Notice, having withdrawn their 180 Day Notice during the week. Hampshire Trust Bank's 95 Day Notice Account pays 5.51%. Vanquis Bank pay 5.50% for 90 Day's Notice and Melton Building Society pay the same rate but want 180 Day's Notice in return.
Short term fixed rates fell on the week and Monument Bank lead the way paying 5.55% for 9 Months Fixed with Hampshire Trust Bank a whisker behind paying 5.54% for 9 Months Fixed. ICICI Bank pay 5.53% via Raisin. United Trust Bank offer 5.43% for 9 Months Fixed.
Monument also pay a best buy 5.49% for 6 Months Fixed again just a smidgen ahead of Hampshire Trust Bank paying 5.48%. They are ahead of National Bank of Egypt paying 5.42% on Raisin for the same term with United Trust Bank also paying 5.42%.
1 Year rates fell again, as we have been forecasting. Last week's third place, Metro Bank, now lead paying 5.80%. There's a drop then to Union Bank of India and Al Rayan Bank at 5.70%, following their rate cuts. We think all three of these look vulnerable to further rate reductions. SmartSave are at 5.66%, after they also cut, ahead of isbank paying 5.65% via Raisin. There's a drop then to Kent Reliance at 5.58% and Charter Savings Bank at 5.57%, with Close Brothers and Ford Money close behind at 5.55%. There's eight providers at 5.50% and we think this is where 1 Year rates will now head to by the end of 2023.
Metro Bank lead the way at 5.80% with Union Bank of India at 5.70% then a big drop to United Trust Bank's 15 Month Fixed paying 5.45%, alongside BLME and Gatehouse who offer the same rate for their 18 Month Fixed. Paragon Bank pay 5.40% via Raisin.
Union Bank of India lead the way on 2 Year paying 5.70% before a big drop to Birmingham Bank who improve their rate to 5.51% to move up to second. They are tiny with just £10m on the balance sheet though so expect this rate to go quicker than a 100m sprint. A whisker behind is Zenith Bank paying 5.50% via Raisin before another drop to BLME and Gatehouse Bank who are locked at 5.40%. Secure Trust Bank pay 5.36% then come Close Brothers paying 5.35% via Hargreaves Lansdown's Active Savings platform and direct.
Three year rates fell sharply with 0.20% coming off the best buy rate - and that's only due to Birmingham Bank launching at 5.40% this morning. This won't last the week though so move quickly to secure it. BLME pay 5.35% in second, despite their rate cut last week, and third is RCI Bank at 5.20% as all bar one of last week's top ten have cut or gone. Zenith Bank also pay 5.20% and Gatehouse Bank and United Trust Bank are tied at 5.15% with less than ten providers paying 5.05% or more.
JN Bank, BLME and Union Bank of India are locked at 5% as 0.40% is slashed off the best buy rate in just a week. Cynergy are next at 4.85% with Gatehouse at 4.80% and Aldermore Bank at 4.65%. Zopa pay 4.61% ahead of four providers at 4.60%.
There are no 5 Year rates above 5% as JN Bank, BLME and Union Bank of India all share best buy spot paying 5%. SmartSave are next at 4.82%, as they rejoin the market, ahead of UBL Bank who pay 4.81% via Raisin and direct, as do Secure Trust Bank. Close Brothers pay 4.80% via Hargreaves Lansdown's Active Savings platform.