ISA round up - 4th December
03/12/2023
Fixed rate ISAs saw further cuts this week with 2 and 3 Year Fixed seeing big cuts again. Unfortunately, this looks set to continue this week with further reductions expected albeit the pace of cuts is likely to fall. The next Base Rate decision is on 14th December and unless the guidance on Base Rate changes from the current expectation that 5.25% is the peak and rates will start to fall in 2024, there's no basis for anything other than more fixed rate ISA cuts. Easy access and notice ISA rates are holding up, although there's some signs of easing back on easy access ISA rates. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
Zopa Bank remain best buy at 5.08%, but their account is for new subscriptions only initially, ahead of Principality Building Society who pay 5.06% - but a whopping 0.96% of this is a bonus for 12 months. Virgin Money are next at 5.01% but this account pays a lower rate of 2% if more than three withdrawals are made in a calendar year. Cynergy pay 5% following their rate cut at the end of last week. Leeds Building Society are next at 4.95% with Sainsburys Bank and and Charter Savings just behind - both tied at 4.91%. Metro Bank do pay 5.11% but this has a massive 3.46% 12 month bonus, which is why we exclude it from our tables - and it is only available in their branches.
Mansfield Building Society lead the way with its 180 Day Notice paying 5.30%. Teacher's Building Society are next paying 5.25% for 180 Days' Notice for this and 120 Days for 5%. Chorley Building Society are third with their 150 Day Notice paying 5.05%. Furness Building Society are next with their 90 Day Notice paying 5.01%. Loughborough Building Society pay 5% for 180 Days Notice and 4.75% for 120 Day Notice. With several easy access ISA rates now at 5% and above, no other notice accounts warrant consideration in our view.
Metro Bank remain best buy at 5.71% but this can only be accessed via their branches. Next are Virgin Money at 5.65% - but savers must have or open a Virgin Money current account to get this rate though. There's a huge drop then to Charter Savings Bank at 5.36% and Kent Reliance at 5.35%, with both providers cutting rates in the week. Zopa Bank also dropped their rate - to 5.32% - ahead of Secure Trust Bank at 5.31%. Aldermore Bank pay 5.30% alongside Buckinghamshire Building Society with several providers then at 5.25% and 5.20%.
Rates dropped again with Saffron Building Society back at the top of the charts at 5.15% - having cut from 5.40% less than two weeks ago having found themselves top then. Expect the same imminently this week. Zopa Bank are next at 5.12% but this is only open to new subscriptions. Secure Trust Bank are just behind at 5.11% with Leeds Building Society and Close Brothers next at 5.10%. Metro Bank pay 5.06% ahead of a cluster of providers at 5% lead by Aldermore Bank.
With last week's top two cutting rates, Secure Trust are promoted to best buy at 4.86% ahead of Aldermore Bank who pay 4.85%, which is matched by Ford Money, Close Brothers, Shawbrook and Leeds Building Society. Zopa Bank pay 4.81% ahead of Cynergy Bank at 4.80%.
Hinckley & Rugby pay a best buy 4.90% but this is only available in branch or by post. UBl Bank are second at 4.81% with Principality Building Society paying 4.73% and Gatehouse Bank at 4.70%. Zopa Bank drop to 4.62% following their rate cut.
Moneybox pay a best buy 4.25% - but their rate does include a 0.75% bonus for 12 months. Nude Finance pay 3.80% but their rate comes with a £2 monthly fee - although this is fee free for the first 12 months currently. Bath Building Society are at 3.79% ahead of Paragon Bank at 3.51%. Beehive Money are just behind at 3.50%. Skipton Building Society pay 3.25% and Newcastle Building Society are lagging at 3%.