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Statistics released today show that the inflation rate (Consumer Price Index) remained at 2.0% during June, meaning that 114 fixed rate bonds and 12 fixed rate ISAs (based on a £10,000 deposit) can now match or beat inflation*.

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Shawbrook Bank has increased the rate on its one-year fixed rate ISA to 1.62% on maturity, seeing it now sit joint-top of its respective chart. This follows recent increases from Cynergy Bank and Paragon Bank in the one-year fixed sector and could be an early start to an Autumn ISA season.   

Shawbrook Bank’s 1 Year Fixed Rate Cash ISA Bond Issue 33 requires a minimum deposit of £1,000 and allows further additions while the issue is open. Early access is also allowed but subject to 90 days’ loss of interest. Transfers in from cash and stocks and shares ISAs are permitted, while transfers out are allowed but again subject to the 90 days’ loss of interest. The ISA must be opened online but can then be managed by phone as well.

Research from Moneyfacts.co.uk shows that the average two-year fixed and tracker mortgage rates have remained unchanged since the beginning of June at 2.49% and 2.01% respectively, while the average five-year fixed rate has remained unchanged at 2.85% since the beginning of May this year. However, the average 10-year fixed rate – a sector with only 151 individual products – did see some movement, albeit only increasing by 0.01% to 3.01% last month.

The lack of rate change this month comes despite SWAP rates – a derivative market lenders use to hedge themselves against interest rate fluctuation – falling noticeably since the beginning of May this year. The two-year SWAP rate has fallen by 0.31% to 0.74% since May this year, while the five-year SWAP rate has dropped by 0.39% to 0.80% and the 10-year by 0.40% to 0.95% over the same period.