Savings round up - 18th December
17/12/2023
Base Rate was held at 5.25% on Thursday with six members in favour of the hold and three voting to raise. Financial markets are now pricing in a Base Rate cut - likely at the MPC meeting in May 2024. Fixed rates fell back sharply in the week and, sadly for savers, we expect more of the same this week. This will be partly in response to the Base decision but also ahead of the Christmas shut down - we expect a round of cutting by providers as many will seek to avoid being top of market over the festive period and the volumes this will bring at a time of significantly reduced staffing levels. In just six weeks, the best buy five year rate has dropped by 1%! All fixed rate terms are down at least 0.50% in that timeframe. 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% with Paragon Bank next with their Double Access Account paying 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. There's a small drop then to Cahoot at 5.12% and Leeds Building Society at 5.10% - after the mutual increased their rate last week. Virgin Money and Charter Savings pay 5.07% - but the Virgin rate falls to 2% if more than three withdrawals per year are made whereas there are no restrictions on the Charter rate. Ratesetter pay 5.06% via Hargreaves Lansdown's Active Savings platform, which also comes with cashback of up to £100 for new customers.
United Trust Bank offer a best buy 5.58% on 200 Day Notice and 5.40% on 100 Day ahead of Hampshire Trust Bank's 95 Day Notice Account which pays 5.51%. There are four providers paying 5.50% - Vanquis Bank for 90 Day's Notice, Tipton & Coseley for 120 Day's and Mansfield Building Society and Melton Building Society both want 180 Day's Notice in return. QIB Bank improved their rates on Raisin - 5.40% for 95 Day's Notice, 5.35% for 60 Day's and 5.30% for 31 Day's.
United Trust Bank lead the way offering 5.38% for 9 Months Fixed. Byblos Bank are next paying 5.28% via Raisin with fellow Raisin stablemate, National Bank of Egypt, paying 5.23% as do app based Monument Bank.
United Trust Bank also top the charts on 6 Months paying 5.42%. Byblos Bank are next paying 5.32% via Raisin as do Sharia provider, BLME. Close Brothers pay 5.30% via Hargreaves Lansdown's Active Savings platform. However, there's cashback on the Close account which could make this the best return for any new customers.
One year best buy rates tumbled with Al Rayan Bank leading the way at 5.70%, ahead of Metro Bank who have cut to 5.66%. There's a drop then to QIB Bank paying 5.50% via Raisin and Raisin stablemate Ziraat Bank also paying 5.50%. BLME, Habib Zurich and ICICI Bank all pay 5.50% too. SmartSave pay 5.46%, after they cut again last week, and Investec are just behind at 5.45%. There's four providers at 5.40%. We believe that one year best buy rates will drop lower than this in the New Year with our expectation being best buy rates around 5.20% - 5.30%.
Metro Bank lead the way but at a reduced rate of 5.66% with BLME at 5.45% and Union Bank of India down to 5.35% following their cuts late on Friday. United Trust Bank's 15 Month Fixed pays 5.33% and Zopa Bank pay 5.21% via Hargreaves Lansdown's Active Savings.
Union Bank of India still lead the way on 2 Year but pay 0.30% less following their cut to 5.40% late on Friday. There's still a drop to BLME at 5.25% with RCI Bank next at 5.20%. The same rate is paid by Close Brothers on Hargreaves Lansdown's Active Savings platform, which also comes with up to £100 cashback. Birmingham Bank are back in the market too with a new rate of 5.20%. United Trust Bank pay 5.18% and Secure Trust offer 5.11% ahead of a cluster of providers at 5.10%.
Al Rayan Bank pay a best buy 5.10% as the only remaining member of last week's top five. isbank pay 5% via Raisin as do Arbuthnot Direct, BLME, Gatehouse Bank, Zenith and Birmingham Bank who return to the market. Close Brothers pay 4.95% via Hargreaves Lansdown's Active Savings platform.
BLME pay a best buy 4.80% despite cutting their rate last week. Gatehouse pay 4.65% having also reduced their rate and Zopa Bank pay 4.61%. UBL Bank, via Raisin, pay 4.60% alongside Ikano Bank, Cynergy and Union Bank of India who cut late on Friday.
Last week's top four have all gone promoting UBL Bank, who pay 4.81% via Raisin, to top spot. There's a drop then to Close Brothers who offer 4.70% via Hargreaves Lansdown's Active Savings platform. BLME also pay 4.70% and fellow Sharia provider, Gatehouse Bank, offer 4.65% - as do JN Bank. There's four providers at 4.60%.