ISA round up - 18th December
17/12/2023
Last week saw a knife taken to one and two year fixed ISA rates with several of the top 1 Year rates cut or withdrawn and nine of last week's top 14 on 2 Year gone or reduced. Easy access rates have held up - with Leeds Building Society even increasing their rate - and longer term fixed ISA rates also steady. However, we expect further cuts this week - both in light of the hold on Base Rate at Thursday's Bank of England MPC meeting, and ahead of Christmas when providers will not want the volumes associated with paying best buys while they have significantly reduced staffing levels. With Base now expected to fall as early as May, and to get below 4% over the next five years, there's little justification for some of the rates being offered and we only forsee more falls this month and into the New Year. 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% and they are now open to transfers in. They are ahead of Principality Building Society who pay 5.06% - but a whopping 0.96% of this is a bonus for 12 months. Leeds Building Society are next paying 5.05%, after they gave their account a 0.10% boost last week. Cynergy pay 5% ahead of Virgin Money, who are next at 4.96% but this account pays a lower rate of 2% if more than three withdrawals are made in a calendar year. Sainsburys Bank and Charter Savings are 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.
Virgin Money lead the way paying 5.50% - savers must have, or open, a Virgin Money current account to get that rate. Metro Bank dropped their rate to 5.41% last week - there account is only available in their branches - with Sainsbury's Bank the best unrestricted account paying 5.20%. Close Brothers and Paragon both offer 5.15% with Charter Savings are a whisker behind at 5.13%. Zopa Bank and Secure Trust both pay 5.12%, following rate cuts late last week.
Last week, 14 providers paid 5% or more but this is down to just five with Metro Bank and Secure Trust leading the way as joint best buys at 5.01%. UBL Bank, Furness Building Society and Close Brothers all pay 5% with Zopa next at 4.91% ahead of a trio at 4.90% - United Trust Bank, Shawbrook and Scottish Building Society.
UBL Bank lead the way at 4.87%, a whisker ahead of Ford Money and Shawbrook paying 4.85% with Zopa Bank at 4.81%. Close Brothers pay 4.80% and Principality Building Society offer 4.72%.
UBL Bank are best buy paying 4.81% with Gatehouse Bank next at 4.70% and Zopa Bank paying 4.62%. Shawbrook pay 4.60% and Close Brothers complete the top five at 4.55%.
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%.