Savings round up - 5th December
A tale of two halves with easy access and notice rates on the increase but further falls in fixed rates. Easy access rates are within a whisker of 3% and we think they'll get to that point before the month is out. However, for those looking to fix, the best rates have gone and we can only see further drops in the coming weeks as providers ease back with longer term predictions for rates falling. Here's our round up of the best buys and key changes from the savings market:
Last week we said we might see one or two providers move ahead of the Bank of England announcement on Base Rate last week and indeed we have. Tiny Buckinghamshire Building Society are the new leaders paying 2.90% although their Single Access Saver permits only one withdrawal per calendar year (a second constitutes closure of the account). Coventry Building Society pay 2.85% with a more amenable six withdrawals restriction on the account (after which interest penalties are paid for further withdrawals). Al Rayan are next at 2.81% and it will be interesting to see if they respond, as they have largely lead the easy access best buy tables since August.
Paragon's Rainy Day Easy Access pays 2.60% but they have been joined by Buckinghamshire Building Society and Harpenden Building Society - both paying the same rate for their Triple Access Savers. Firstdirect are also offering 2.60% tbut they require savers to have, or open, a Firstdirect current account. It is looking increasingly likely we will see 3% on easy access before the month is out.
Savers living near a Marsden Building Society branch can get 3.85% on 180 Day Notice but, for everyone else, the best available is Stafford Railway Building Society's 3.50% on 120 Day Notice. The mutual also pays 3% on 90 Day but both accounts are limited to three and four withdrawals per Society year respectively. Next best is United Trust Bank at 3.20% for their 200 Day Notice (they also pay 2.90% on 100 Day and 2.50% on 40 Day) alongside OakNorth, who pay the same rate for 120 Days' Notice and 3.07% for 95 Days. BLME are next with their 90 Day Notice account now paying 3.14%.
app only Atom Bank lead the way paying 4.35% on 1 Year - a rate we don't expect to last the week. Next is the two Indian banks - State Bank of India and Union Bank of India - both paying 4.31%. Hampshire Trust Bank bucked the trend by increasing its rate to 4.30%. This moves it alongside Gatehouse Bank, Shawbrook and BLME, ahead of Investec who drop to 4.29%. Although we expect Atom to cut their rate, there are 19 providers paying between 4.20% - 4.31% which we expect to provide some support and avoid significant further falls from these price points.
Shawbrook Bank and Union Bank of India lead the way with both providers paying 4.55%. Next is Hampshire Trust Bank at 4.50%, who increased their rate on Friday. QIB are down to fourth at 4.45%, after cutting their rate last week. Gatehouse and BLME both pay 4.40% to complete the top six.
Zenith Bank lead the way at 4.68%, narrowly ahead of QIB at 4.65%, both only available via the Raisin savings platform. The best direct rates are from Hampshire Trust Bank, who pay 4.65% following an uplift to their rate on Friday, Zopa and Union Bank of India. Buckinghmashire Building Society, Shawbrook and Gatehouse all pay 4.60%. There's only Secure Trust Bank (4.55%) between them and a cluster of providers at 4.50/4.51% which is where we think the 2 Year market is heading for.
Zenith Bank lead the way at 4.75% alongside Nationwide Building Society and Gatehouse Bank. Savers living near Melton Mowbray can get the same rate if they are prepared to go in to one of the mutual's four branches. Next best is Zopa Bank at 4.70% with Union Bank of India paying 4.60%. There's a 0.40% spread across the top 15 rates in three year and we suspect this will mean further falls this week with best buys likely to reduce.
Gatehouse Bank top the charts at 4.80% with Zopa just behind at 4.75% before a big drop to Vanquis in third at 4.60% alongside Union Bank of India.
Gatehouse Bank also lead the pace on 5 Year with a best buy of 4.85% ahead of Zopa at 4.75%. Third place is shared by Tandem, Secure Trust Bank and State Bank of India at 4.65%. Aldermore Bank are next at 4.60% before a big drop to 4.50% where there's a cluster of providers. We expect to see five year rates fall back towards this level in the coming weeks.