Savings News

Changes within the ISA charts have slowed down this week, but providers have continued to raise rates which has resulted in new higher rates being available in both the two and one year fixed ISA charts. As well as this, competition at the top of the easy access ISA chart has increased with five ISAs now offering the top rate in this chart.

Savers should note that the rates below are the best rates available at 12pm on Thursday 22 July 2021 and, although correct at the time of publishing, providers may reduce or withdraw rates at any time. As well as this, the rates highlighted are only those available to new customers.

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market. 

Average saving rates across all charts except notice ISAs have increased month-on-month, with challenger banks boosting competition within the savings market.

Figures due to be released in the Moneyfacts UK Savings Trends Treasury Report show that that the average rate on easy access savings accounts has increased by 0.01% month-on-month, up from 0.16% in June to 0.17% in July. Meanwhile, the average rate on one year fixed rate bonds has risen by 0.04% and the average rate on longer-term bonds has risen by 0.05%, up from 0.48% to 0.52% and 0.72% to 0.77% respectively.

Although some high street banks and building societies are offering highly competitive rates, for example Leeds Building Society offering a market-leading easy access savings account rate of 0.50% on its Limited Issue Online Access Account (Issue 20), savers will likely have to look to challenger bank for the top savings rates.

“The rise of challenger banks in recent years has breathed life into the savings market and there are now more savings providers than ever before on our records,” explained Rachel Springall, finance expert at Moneyfacts.co.uk. “The injection of much-desired competition has been noticed even more recently, as challenger banks make their presence known in the top rate tables. In the past few weeks alone, there have been several rate increases to fixed bonds, many by challenger banks. However, the shelf life on a fixed rate bond fell to 53 days, showing signs that a good deal may not last too long as brands continue to react to market movements.”

Competition at the top of the easy access savings account chart increased this week with Leeds Building Society relaunching its Double Access Saver, resulting in 10 accounts now paying the top easy access saving rate. Meanwhile, Wesleyan Bank launched a range of fixed rate bonds during the week which has resulted in the three year option topping the three year fixed rate bond chart.