Savers had a miserable 2019 with rates continuously falling throughout the year, but there were glimmers of hope during the year with unexpectedly high rates being introduced. Savers wanting to take advantage of these rates had to act quickly as they were often only available for short periods of time.
One of the biggest savings stories this year came from M&S Bank when it reduced the rate on the last 5% AER regular savings account in November, cutting the rate to 2.75% AER. Also in November, Coventry Building Society teamed up with The Royal British Legion to launch its highly popular Poppy Bond (146), which offered savers a rate of 1.70% AER. In September, Marcus by Goldman Sachs® made headlines when it reduced the rate on its easy access account which had been topping the chart since its launch in 2018, the rate dropped from 1.50% AER to 1.45% AER. This year savers wanting the top savings rates often had to opt for an account that could only be opened online which, back in February, we highlighted how this could negatively impact older savers.
This year AgriBank via Raisin UK offered the highest savings rate overall when it paid 3.05% AER on its 5 Year Fixed Term Deposit, which required a £10,000 opening deposit. Secure Trust Bank offered the second highest savings rate this year with its 7 Year Fixed Rate Bond, which paid 2.76% AER on a £1,000 minimum opening deposit. The highest rate available on a three year fixed rate bond this year came from AgriBank via Raisin UK, which paid 2.64% AER on a £10,000 minimum opening deposit. Gatehouse Bank offered the highest rate on a two-year fixed bond this year when it paid an expected profit rate of 2.45% AER on its Raisin UK Fixed Deposit, which required a minimum opening deposit of £1,000. The highest rate available on an 18 month bond came from Al Rayan Bank, which paid an expected profit rate of 2.32% AER on its Fixed Term Deposit and which required a £1,000 deposit to open. The highest rate on a one year bond this year came from Bank of London and The Middle East (BLME) which paid an expected profit rate of 2.20% AER on a minimum opening deposit of £1,000.
While Marcus by Goldman Sachs® held the top spot in the easy access account chart for most of the year, other providers challenged for the top, especially once the rate was reduced on the Marcus by Goldman Sachs® account in September. The best easy access rate available overall this year came from Al Rayan Bank, which offered an expected profit rate of 1.61% AER on its Everyday Saver, which required a £500 minimum deposit. This account was launched in September and savers had to be quick to get this rate as it only stayed in the chart for a few weeks. The top rate on an easy access account with a bonus came from ICICI Bank UK with its HiSAVE Bonus Saver Account offering 1.55% AER on a £1 deposit.
Savers looking for some good news this year could look to the notice chart as research carried out by Moneyfacts.co.uk in October found that average notice account rates had risen from 1.01% gross in October 2018 to 1.13% gross in October 2019. Overall the best rate available in the notice account chart during 2019 came from Secure Trust Bank, which paid 1.92% AER on its 90 Day Notice Account on a £1,000 deposit.
Overall the best fixed bond rate currently available is being offered by UBL UK which is paying 2.38% AER on its 5 Year Fixed Term on a £2,000 deposit. Those looking to lock their money into a longer term account can get the best rate from PCF Bank which is paying 2.15% AER on its 7 Year Term Deposit Issue 11 that requires a £1,000 minimum opening deposit. Bank of London and the Middle East (BLME) is currently topping the three, two, one year fixed bond charts, with its Premier Deposit Account. The three year version pays and expected profit rate of 2.10% AER, the two year version pays an expected profit rate of 1.95% AER and the one year version pays and expected profit rate of 1.80% AER. All these accounts require a £1,000 minimum opening deposit.
Offering the highest rate on an easy access account is Shawbrook Bank, which is paying 1.41% AER on its Easy Access – Issue 17 on a £1,000 deposit.
United Trust Bank is currently offering the highest rate overall in the notice account chart with its UTB 200d Notice Account which pays 1.75% AER on a £5,000 deposit.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.