Savings News

Last updated: 19th May 2022 at 12:00pm 

Marcus by Goldman Sachs® and SAGA set the bar for top easy access rates.

While not as volatile as in previous weeks, the ISA market continues to see an uplift in rates. On the fixed rate market, Castle Trust Bank is now the market-leading provider across the two and three year fixed-rate ISA charts. Meanwhile, Marcus by Goldman Sachs® and SAGA now occupy top spot on the easy access chart themselves. On the notice market, we have finally seen a change with Teachers BS equalling Melton BS’s 100 Day Notice Cash ISA rate.

Last updated: 19th May 2022

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

Inflation has now eaten away at savings accounts for an entire year, despite notable uplifts to savings rates across the market. Today the Consumer Price Index (CPI) rose to 9.0% during April, from 7.0% in March.

In May 2021, there were no deals that could beat 1.5% (April 2021 CPI) and in May 2020, there were 376 deals (24 easy access, 49 notice accounts, 24 variable rate ISAs, 70 fixed rate ISAs and 209 fixed rate bonds) that could beat 0.8% (April 2020 CPI)*.

Moneyfacts UK Savings Trends Treasury Report data shows average fixed rates have seen their biggest monthly rises in over a decade. The average one-year fixed bond, longer-term fixed bond, and longer-term fixed ISA stand at their highest levels since 2019.

The average one-year bond rate rose month-on-month to 1.24% and stands at its highest level in over two years. This is the biggest month-on-month rise since April 2011 and is the highest average rate recorded since November 2019 (1.28%). The average long-term fixed bond rate rose to 1.68%, the biggest rise since August 2009 and stands at its highest since August 2019 (1.72%).

Meanwhile, product choice overall has grown by 279 deals year-on-year, to 1,685 savings deals (including ISAs), the highest count in choice since March 2020, and is far beyond the record low count of 1,340 in April 2021.