The best saving rates this week 02.10.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 02/10/2020

This week saw changes throughout the savings chart, particularly in the easy access savings account chart. These changes have resulted in two of last week’s easy access rates, along with last week’s top notice account rates, no longer being available this week. The rate reductions and withdrawals highlight the fact that savers need to act quickly to secure the best rates. The best rates overall can still be found in the fixed rate savings chart where savers can get the top rate of 1.60% AER on a five-year fixed rate bond.
As rates are changing rapidly the below rates were correct at the time of publishing but may no longer be available. As such, savers should check the savings charts regularly to see the best rates currently available.

The best fixed rate bond savings rates

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

Five-year bond

1.60% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Three-year bond

1.45% (expected profit rate)

Gatehouse Bank

Raisin UK - 2 Year Fixed Term Deposit
 Fixed Term Deposit

Two-year bond

 Two-year bond

1.36% (expected profit rate)
 1.36% (expected profit rate)

Gatehouse Bank

Raisin UK - 1 Year Fixed Term Deposit
 Fixed Term Deposit

One-year bond

 One-year bond

1.26% (expected profit rate)
 1.26% (expected profit rate)

Remaining at the top of the five-year fixed rate bond chart this week was Bank of London and The Middle East (BLME) with the five-year version of its Premier Deposit Account, paying an expected profit rate of 1.60% gross on anniversary. BLME also offers a seven-year option of this account which pays the same expected gross rate. Along with both these accounts, BLME topped the three-year fixed rate bond chart this week with the three-year version of its Premier Deposit Account, paying an expected profit rate of 1.45% gross on anniversary. All these account require a £1,000 minimum deposit to open. As well as this, a BLME transfer account to hold funds pending investment is needed. These accounts must be opened online and then managed by post.


Topping both the two and one-year fixed rate bond charts this week was Gatehouse Bank. In the two-year chart its Raisin UK – 2 Year Fixed Term Deposit pays an expected profit rate of 1.36% gross on maturity and its Fixed Term Deposit pays an expected profit rate of 1.36% gross on anniversary. In the one year chart, both its Raisin UK – 1 Year Fixed Term Deposit and Fixed Term Deposit pay an expected profit rate of 1.26% gross on maturity. All these accounts require a £1,000 minimum deposit to open. The Raisin UK accounts must be opened online, but can then be managed online, by post and by phone. They also have the added incentive of Raisin UK offering a bonus of up to £50 when a customer’s first savings account is opened via its website (terms and conditions apply). Both options of the Fixed Term Deposit must be opened and managed online.

Compare the best fixed rate bonds

All the rates available can be found on our fixed rate bonds chart.

The best easy access savings rates

Provider

Account

Notice

Rate AER

National Savings & Investments

Income Bonds

None

1.16% – rate reducing to 0.01% 24.11.20

Coventry Building Society

Double Access Saver (Online) (3)

None

1.05%

National Savings & Investments

Direct Saver

None

1.00% - rate reducing to 0.15% 24.11.20

This week saw a lot of changes in the easy access savings chart, but continuing to top the chart is National Savings & Investments (NS&I) with its Income Bonds paying 1.15% gross monthly. Savers should note that on the 24 November 2020 this rate will be reduced to 0.01%. It requires a £500 minimum deposit to open and allows unlimited further additions. Withdrawals are permitted at any time but must be made via a nominated account. As well as this, all transactions must be from a minimum of £500. This account is 100% backed by HM Treasury and can be opened and managed online, by post and by phone.
The second best easy access account rate came from Coventry Building Society, which pays 1.05% gross on anniversary on its Double Access Saver (Online) (3). To open this account a minimum deposit of £1 is needed. Unlimited further additions can be made. Withdrawals are restricted to two penalty-free withdrawals per annum, and any further withdrawals are subject to 50 days’ loss of interest. This account must be opened and managed online. There is also a version of this account that pays interest monthly at a gross rate of 1.04%.
NS&I had the third best easy access account rate this week with its Direct Saver, paying 1.00% gross yearly. This rate is due to be reduced to 0.15% on 24 November 2020. A £1 minimum deposit is needed to open this account, which is 100% backed by HM Treasury. Unlimited further additions are allowed and withdrawals can be made at any time but must be made via a nominated account. It can be opened and managed online and by phone.

Compare the best easy access accounts

All the rates available can be found on our easy access accounts chart.

The best notice account rates

Provider

Account

Notice

Rate AER

Aldermore

120 Day Notice Account

120 days

1.10%

Bank of London and The Middle East

90 Day Notice Account (Issue 3)               

90 days

1.10% (expected profit rate)

UBL UK

35 Day Notice

35 days

1.00%

Both Aldermore and Bank of London and The Middle East (BLME) paid the top notice account rate of 1.10% gross this week. Aldermore pays 1.10% gross on anniversary on its 120 Day Notice Account. This account requires a £1,000 minimum deposit to open. Unlimited further additions are allowed. Withdrawals can be made subject to 120 days’ notice. This account must be opened and managed online. There is a version that pays interest monthly at rate of 1.09% gross.
BLME pays an expected profit rate of 1.10% gross quarterly on its 90 Day Notice Account (Issue 3). A £10,000 minimum deposit is needed to open this account. It allows further additions. Withdrawals can be made subject to 90 days’ notice. The account can only be opened and managed online.
The best rate in the up to 60 days notice chart this week came from UBL UK, which pays 1.00% gross ½ yearly on its 35 Day Notice account. To open this account a £1 minimum deposit is needed. It allows unlimited further additions. Withdrawals are permitted subject to 35 days’ notice, if notice is not given, earlier access is allowed but subject to a 35 days’ loss of interest penalty. It can be opened and managed in branch and by post.

Compare the best notice accounts

All the rates available can be found on our notice accounts chart.

Disclaimer

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.

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