Savings round up - 2nd January
01/01/2024
Christmas hasn't been a time of joy for savers with fixed rates continuing to fall sharply - the best 18 Month rates down over 0.50% in just two weeks! 1 Year rates still offer the highest returns with 5.50% on offer but we expect that to be gone this week with our view that the best 1 Year rates are heading to below Base by the end of this month. Easy access and notice rates are holding up but we think it is only a matter of time before they start to ease back as financial markets are pricing in a Base Rate of 4.75% before the end of 2024. Here's our round up of the best buys and key changes from the savings market from the festive season:
Ulster Bank still lead the way paying 5.20%. There's a small drop to Cahoot at 5.12% and Leeds Building Society at 5.10%. 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 - this could provide the best total return for some savers. 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.
United Trust Bank offer a best buy 5.58% on 200 Day Notice and 5.40% on 100 Day ahead of Vanquis Bank who pay 5.50% for 90 Day's Notice. Melton Building Society pay 5.50% too but want 180 Day's Notice in return. Buckinghamshire Building Society offer 5.45% for 195 Day's Notice and Monument Bank pay 5.40% for 60 Days. QIB Bank pay 5.40% for 95 Day's Notice, 5.35% for 60 Day's and 5.30% for 31 Day's via Raisin.
National Bank of Egypt pay a best buy 5.08% as do app based Monument Bank with Charter Savings Bank paying 5.05% via Hargreaves Lansdown's Active Savings - however, this also comes with cashback for new savers which could provide a better overall return.
BLME pay a best buy 5.27% ahead of Zenith Bank at 5.20%. Emirates Bank pay 5.17% via Hargreaves Lansdown's Active Savings platform. However, there's cashback on this account which could make this the best return for any new customers.
One year best buy rates have tumbled another 0.20% over Christmas with Al Rayan Bank now leading the way at 5.50% alongside Indian bank ICICI. There's a drop then to BLME at 5.35% with Ikano Bank and Investec tied just behind at 5.30%. Secure Trust Bank pay 5.26% and Marcus pays 5.25%. There's only eight providers paying above 5.20% and we expect to see most of these cut or withdraw this week with best buy rates heading down towards the Base Rate of 5.25%.
18 Month best buy rates have dropped by 56bps over Christmas with United Trust Bank now leading the way with its 15 Month Bond paying 5.10%. BLME pay the same rate but for 18 Months with Union Bank of India down to 5.10% following another rate cut. Tesco Bank and Al Rayan both pay 5% with all other providers below this point.
Union Bank of India still lead the way on 2 Year but pay 0.25% less following their cut to 5.15% last week. Secure Trust Bank are next at 5.11% but we expect this to be gone in the next 48 hours. Al Rayan Bank and Investec are tied third with both paying 5.05%. isbank pay 5% via Raisin - the same rate is paid by UBL Bank, Ikano, BLME, Castle Trust and Zenith Bank.
Al Rayan Bank pay a best buy 4.95% as rates fall below 5%. UBL Bank are next at 4.87% via Raisin and direct. BLME pay 4.85% with Castle Trust Bank, Ikano and Zenith Bank all paying 4.80%.
UBL Bank, via Raisin, pay a best buy 4.60% alongside Ikano Bank and BLME. Bank of Ceylon pay 4.55% via Raisin and fellow Raisin provider, isbank, pay 4.50%.
UBL Bank, who pay 4.75% via Raisin, retain top spot despite their rate cut last week. There's a big drop then to BLME at 4.60% with Bank of Ceylon next at 4.55% via Raisin. isbank pay 4.50% via Raisin as do Ikano Bank with all other providers paying sub 4.50%.