Savings round up - 25th March
24/03/2024
The Bank of England kept Base Rate at 5.25% but there was a swing in the vote with 8 members voting for hold and 1 for a cut, compared to 6 hold, 2 raise and 1 cut last time. With inflation figures falling and Governor Andrew Bailey saying 'we do need to see further progress, but do want to give this message very strongly we have had very encouraging and good news' it looks only a matter of time before we see a cut to 5%. Our view is that this is unlikely to come at the next meeting in May, but we expect it to happen in June. Swap rates, which banks use as a guide to price off, fell strongly after the news. What does this mean for savers? We expect to see easy access rates above 5% fall away in the coming weeks and 1 and 2 Year Fixed rates to ease back too. There's little justification for 1 Year rates above 5% so we expect to see 1 Year rates ease back towards 5.10% during April and 2 Year to fall to just below 5%. Here's our round up of all the best buys and key changes from the savings market from the past week:
Charter Savings remain best buy with their easy access account paying 5.08%. Kent Reliance are just behind at 5.07% and so are Virgin Money with their Defined Access Saver, which pays 5.06%, but this falls to 2% if more than three withdrawals per year are made. Paragon Bank are fourth with their Double Access Saver paying 5.05% - although there's a hefty cut to 1.50% if three or more withdrawals are made. Family Building Society's online saver pays 5.04% and the only other provider paying over 5% is Hampshire Trust Bank, who pay 5.01%.
We have a new best buy as Oxbury Bank pay a market leading 5.32% on 90 Day Notice. They move ahead of Monument, whose 60 Day Notice pays 5.27%. There is tie at 5.25% - Investec pay this for 90 Days and United Trust Bank for 180 Days - although this is a Base Rate tracking account. QIB Bank pay 5.20% via Raisin and Monument, Cynergy and Vanquis pay the same rate - Monument for 45 Day's Notice Cynergy and Vanquis for 120 Day's Notice.
Hampshire Trust Bank lead the way paying 5.18% for 6 Months but have been joined by Allica who have increased their rate to match HTB. They move ahead of Monument, who offer 5.15% for 6 Months Fixed, with Charter Savings Bank paying 5.12% via Hargreaves Lansdown in a tight knit top four.
Emirates Bank lead the way on 9 Months at 5.15% on Hargreaves Lansdown's Active Savings platform. They are ahead of Hampshire Trust Bank who pay 5.12%, Aldermore Bank who pay 5.05% and Charter Savings Bank, who also offer 5.05% on their 9 Month Fixed.
Also worthy of note is Emirates 3 Months Fixed at 5.04% on Hargreaves Lansdown.
Oxbury and Close Brothers lead the way - with both paying 5.26% - ahead of last week's leader, SmartSave, who have cut to 5.23% where they've been joined by Allica Bank who made a late increase on Friday. Charter Savings pay 5.21% and Hampshire Trust Bank offer 5.17%. Kent Reliance and Investec are tied at 5.15%. Aldermore Bank pay 5.11% and OakNorth pay the same rate via Hargreaves Lansdown's Active Savings platform to complete the top 10.
United Trust Bank lead the way with their 15 Month Fixed paying 4.90%, which is matched by Union Bank of India, but theirs is an 18 Month Fixed rate. Cynergy Bank's 15 Month Bond pays 4.85% before a four way tie at 4.80%. Zopa Bank pay 4.80% via Hargreaves Lansdown Active Savings, as do Al Rayan Bank, BLME and Cynergy. Gatehouse Bank and Skipton Building Society both pay 4.75%. Aldermore Bank pay 4.70%.
Oxbury Bank lead the way paying 5.11% with Hampshire Trust Bank close behind at 5.06% and last week's leaders Close Brothers, paying 5.05% via Hargreaves Lansdown Active Savings, down to third. DF Capital pay 4.96% and Union Bank of India offer 4.95%. Zenith Bank are just behind at 4.90%, where they have been joined by Hodge who cut their rate. There's a drop then to Zopa Bank at 4.76%, who are ahead of a plethora of providers at 4.75%.
Zenith Bank lead the way at 4.67%, ahead of Oxbury, who rejoined the market at 4.66%, and last week's best buy Hampshire Trust Bank paying 4.65%. Close Brothers pay 4.65% via Hargreaves Lansdown Active Savings and Al Rayan Bank pay 4.65% via Raisin and direct. UBL Bank pay 4.63% direct and also pay 4.63% via Raisin. Birmingham Bank and Shawbrook also pay 4.63% as the top 11 are separated by just four basis points.
isbank, pay a best buy 4.50% via Raisin ahead of Oxbury Bank who come back in at 4.31% to nip ahead of Zopa Bank and BLME, who both pay 4.30%. UBL Bank pay 4.26% direct and also pay 4.26% via Raisin. United Trust Bank offer 4.25% and Cynergy complete the top seven at 4.20%.
Al Rayan Bank pay a best buy 4.55% via Raisin alongside Close Brothers and a whisker ahead of Hampshire Trust Bank who offer 4.54%. Shawbrook pay 4.53% and UBL Bank 4.52% - UBL Bank also pay 4.52% via Raisin. isbank pay 4.50% via Raisin and then come Hodge Bank, who cut to 4.41% on Friday, and Atom Bank who drop to 4.40%.