Savings News

With some experts expecting the Bank of England to raise interest rates further, should you consider a short, fixed term home for your savings?

The Bank of England currently expects inflation to rise further, slightly exceeding 11% in October due to an increase in the Ofgem price cap.

It means that there could be further base rate hikes in the future as the Monetary Policy Committee attempts to bring inflation down to its 2% target.

Savers will, no doubt, welcome a potential base rate increase and hope it can be passed on to their own investment. So, if the base rate is to increase, some investors might feel less inclined to commit to a long-term fixed rate bond right now.

With increased interest for six- and nine-month bonds on our consumer website, we have identified the top rates for this corner of the market.

Last updated: 30th June 2022 at 12:00pm 

While competition intensifies for five year fixed options, Leeds BS’s Limited Issue 30 Month Fixed Cash ISA (Issue 1) still offers a better rate.

While the top rates on the easy access chart saw minimal movement this week, the fixed ISA market has become much more competitive. For five year fixed options there are now four different providers which match the top rate of 2.60% on offer. It is important to note that this rate can still be bettered by Leeds BS, which requires your cash to be locked in for less time.

Last updated: 30th June 2022

The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market, ranging from mortgages to savings accounts. This week, I have analysed the following deals, along with their perks, of note:

While not market-leading, the increase means it pays the best expected profit rate for easy access accounts.

Gatehouse Bank has increased the expected profit rate on its Easy Access Account to 1.40% today, making it the highest paying Sharia’a compliant offer in this section of the market.

“With savings rates increasing across the board, we want to ensure we have one of the best products on the market and provide our customers with competitive rates,” said Ravi Kumar, Senior Product Manager at Gatehouse Bank.

Overall, its new rate is 0.16% shy of the best interest payout, held by Virgin Money, on the market.  It is also bettered by previous market-leaders Chase, but shares third spot on our charts with several different providers.

These providers include Aldermore, Principality BS, Sainsbury’s Bank and Zopa. Each of these respective accounts come with their own characteristics, which can be viewed on our charts.  

Before Gatehouse Bank’s increase today, Al Rayan Bank offered the best expected profit rate for an easy access account at 1.31%. This rate is currently maintained, and is the second best expected profit rate on the easy access market.

“Inflation and the cost of living is rising rapidly and it’s important that we support our customers with great returns while also giving them the flexibility to access their money,” said Kumar.