Last updated: 20th May 2022 12:00pm
Top easy access rates remain unchanged while best fixed rate bonds increase rates.
Fixed rate bonds have seen the largest rise in over a decade according to the latest data recorded in our UK Savings Trends Treasury Report. In fact, the average one-year bond rate rose month-on-month to 1.24% and stands at its highest level in over two years.
Added to this, the top rates in the fixed rate bond market this week saw a rise too with the one, two, three, and five year top rates all replaced by better offers. In the easy access market change was less volatile, while OakNorth Bank replaced one of its top rates in the notice market for a savings account only offered through the Raisin platform.
Below we’ve highlighted the top rates currently available in our comparison charts that are available to new customers, but higher rates may be available to existing customers only.
Over the past few months, we have seen weekly changes to the best easy access rates on the market. But the past seven days tell a different story, with all three of the same top providers remaining in identical positions.
At the top is Chase, better known as JP Morgan to some readers, with The Chase Saver Account. Interest is paid or compounded monthly on this account, which only needs £1 to start earning interest. When it comes to opening this account, savers are required to own or open a Chase Current Account. Both the Chase Current Account and The Chase Saver Account must be opened and managed via the bank’s app.
In second position is Al Rayan Bank’s Everyday Saver (Issue 2). Operating under Islamic finance principles, the account compounds the expected profit rate of 1.31% monthly and requires a minimum deposit of £2,500 or more. This offer must be opened online, but it can be managed online, via the post, or telephone.
In third spot is another Islamic finance provider in Gatehouse Bank. While it pays 0.01% less than Al Rayan Bank, this provider only pays its expected profit rate out on anniversary. Savers will also require a minimum of £1,000 to open this account and must do so online. Since it is a digital bank, managing this account must be done by the same means.
On the one year chart Gatehouse Bank now leads the way with its 1 Year Fixed Term Deposit via the Raisin platform. It is an account which is designed for those who wish to invest a one-off deposit, because savers are required to add at least £1,000 and cannot add additional funds to their account. The expected profit is paid on maturity but is compounded throughout the bond’s tenure. In order to open the account, customers are required to submit an application online. However, once the account is up and running, they can manage their funds online, via the post, and telephone.
On the two year chart Market Harborough BS leapfrog last week’s Swedish providers Ikano Bank. The Fixed Term Bond 90 needs its savers to cough up a minimum of £10,000 to start investing and also does not accept further additions to your funds. Interest, meanwhile, is paid away or compounded yearly. Opening and managing this account this account must be done online or in branch. However, if you are considering opening this account in branch remember Market Harborough BS is a Leicestershire-based provider. As a result your options will be limited to six locations across Leicestershire and Northamptonshire.
On the three year chart, Al Rayan Bank offer an expected profit rate which is just 0.05% higher than Market Harborough BS’s Fixed Term Bond 90. Al Rayan Bank require a minimum deposit of £5,000, pays its expected profit on a quarterly basis, and does not accept further additions. Savers can open and manage their account online, via telephone, or mobile app.
To finish off this week’s fixed rate roundup we have Tandem Bank’s 5 Year Fixed Saver. This account allows further additions for fourteen days after account opening. When it comes to interest, this must be paid away on anniversary. To start your bond, submit an application online or via the bank’s mobile app and deposit at least £1. Once this is up and running, managing your account can be done via the telephone or mobile app.
After upping its rate last week, RCI Bank UK is the only provider to offer the market-leading rate for notice accounts of 30 days or under. Savers can choose whether to pay away or compound their interest annually or on a monthly basis. In addition, withdrawals must be made via a nominated account and are subject to a two-week notice period. Users are required to open this account online with a minimum deposit of £1,000. Managing your funds can be done online and via the mobile app. As an extra incentive for environmentally savvy investors, all funds invested in this account will be used to help UK drivers transition to environmentally cleaner electric vehicles.
Moneybox’s 32 Day Notice Account, which is operated by Investec Bank plc, continues as the best notice account under 60 days. This account compounds interest monthly and a single pound can start earning interest. Withdrawals must be made in accordance with the 32 day notice period while opening and managing this deal needs to be done via the mobile app. Savers also have the option to use Moneybox’s roundup feature to add funds to their account. If enabled, this will roundup your everyday purchases to the nearest pound and deposit this balance into your 32 Day Notice Account.
OakNorth Bank completes this week’s roundup with its 120 Day Notice Account which must be accessed through the Flagstone Platform. Investors need £10,000 to access this offer and can expect their interest to be compounded on a monthly basis. Withdrawals are subject to the 120-day notice period being served.
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