The best saving rates this week 09.10.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 09/10/2020

This week, there has been movement in the fixed rate bond charts, as Al Rayan Bank increased rates on its fixed accounts. Meanwhile, Gatehouse Bank reduced rates and, as a result, are no longer in the top tier of rates. In the notice account best rate charts, Secure Trust Bank has withdrawn its 30-day notice account and this has led to Aldermore now offering the best rate without opening restrictions in this category.
This week, we have also made a change to the easy access tables, separating these by those that limit withdrawals and those that don’t. Savers can then choose an account that offers them not only one of the top rates available, but also the right level of flexibility.
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)

Al Rayan Bank

Fixed Term Deposit

Three-year bond

1.46% (expected profit rate)

Al Rayan Bank

Fixed Term Deposit

Two-year bond

1.37% (expected profit rate)

Al Rayan Bank

Fixed Term Deposit

One-year bond

1.27% (expected profit rate)

The Bank of London and The Middle East (BLME) continues to offer the highest rate for a five-year fixed rate bond, with its Premier Deposit Account that has an expected profit rate of 1.60% AER on anniversary. There is also a seven-year version of this account at the same expected profit rate.
Both accounts can be opened online and managed by post only. The minimum opening balance is £1,000. Savers opening these accounts will need to also open a BLME transfer account to hold funds pending their investment. This is completed as part of the process of opening the fixed rate bond.
Al Rayan Bank has increased rates this week on its range of fixed rate bonds and as a result now has the best rates for one, two- and three-year fixed rate terms. Al Rayan Bank also increased the minimum investment required to open these bonds from £1,000 to £5,000 and has removed the option of opening and managing these accounts by post. The expected profit rates are 1.46% AER for the three-year option, 1.37% AER for the two-year and 1.27% AER for the one-year version, and profit is paid quarterly. These accounts can be opened online, in an Al Rayan branch, by phone or using the bank’s App.
Savers must be aware that fixed rate bonds do not usually allow for withdrawals until the entire fixed rate term has ended.

Compare the best fixed rate bonds

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

Aldermore

30 Day Notice Account Issue 10

30 days

0.55%

Note: Excludes ICICI Bank 95-day Notice Savings Account as rate reducing on 30 October 2020 and accounts with restrictions on those that can open an account.
Aldermore and BLME continue to offer the top rate for a notice account.
Aldermore pays 1.10% AER on its 120 Day Notice Account. Interest can be paid on anniversary of account opening or monthly. The minimum balance is £1,000. Withdrawals can be made subject to 120 days’ notice. This account must be opened and managed online.

BLME pays an expected profit rate of 1.10% AER quarterly on its 90 Day Notice Account (Issue 3). A £10,000 minimum deposit is needed to open this account. Withdrawals can be made subject to 90 days’ notice and must be for a minimum of £1,000. The account can only be opened and managed online.

Aldermore has the best rate for a 30-day notice account without any opening restrictions. Its 30 Day Notice Account Issue 10 has a rate of 0.55% AER and interest is paid on anniversary or monthly. Withdrawals can be made subject to 30 days’ notice. The account can only be opened and managed online.

Compare the best notice accounts

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

The best easy access savings rates

Provider

Account

Notice

Rate AER

Yorkshire Building Society

Internet Saver Plus Issue 7

None

0.95%

Leeds Building Society

Limited Issue Online Access Account (Issue 16)

None

0.80%

Principality Building Society

Web Saver Issue 3

None

0.80%

Based on a deposit of £10,000.
Note: Accounts from NS&I have been excluded as the account rates are reducing 24 November 2020.
This week, we have separated the best easy access savings accounts into those that offer no maximum number of withdrawals allowed and those that do, these are called limited access accounts. We have also excluded accounts from National Savings & Investments (NS&I) because the rates offered on these accounts will be reducing 24 November 2020.
The best easy access rate is from Yorkshire Building Society and its Internet Saver Plus Issue 7 account. This account has tiered rates of interest starting from £1 and interest is paid yearly. Savers with more than £50,000 to save can earn 1.00% AER with this account. The tiered rates are:

  • 0.20% AER paid at £1
  • 0.65% AER paid at £1,000
  • 0.95% AER paid at £10,000
  • 1.00% AER paid at £50,000.

The account has a minimum deposit of £1 and it can only be only opened and managed online.
Leeds Building Society has the second-best rate with its Limited Issue Online Access Account (Issue 16). This account also has tiered rates of interest starting at 0.80% for £1,000 and the highest rate of interest at 0.85% AER available at £50,000. Interest is paid on maturity. The tiered rates are:

  • 0.80% AER at £1,000
  • 0.85% AER at £50,000.

The account has a minimum opening deposit of £1,000 and it can only be opened and managed online. This account will mature on 30 November 2021, after which it will be transferred into an instant access maturity account.
The third-best easy access account is from Principality Building Society and its Web Saver Issue 3 account. This has a rate of 0.80% AER and interest is paid yearly. The account may be opened with a £1 deposit and can only be opened and managed online.

Compare the best easy access accounts

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

The best limited access savings rates

Provider

Account

Notice

Rate AER

Coventry Building Society

Double Access Saver (Online) (4)

None – maximum two withdrawals per year

0.96%

Principality Building Society

Online Limited Access Issue 2

None – maximum three withdrawals per year

0.90%

Leeds Building Society

Double Access Saver

None – maximum two withdrawals per year

0.80%

Limited access accounts have a maximum number of withdrawals allowed each year. Savers need to be aware of this limit because if they make additional withdrawals, the bank or building society may apply a penalty such as reducing the account’s interest rate or a loss of interest.
Coventry Building Society has the best rate available for a limited access savings account. The building society launched a new version of this account at a reduced rate to the previous version. Despite this, the Double Access Saver (Online) (4) still has the best rate of 0.96% AER. Interest can be paid on anniversary or monthly. The minimum opening balance is £1, and the account can only be opened and managed online. Savers can make up to two penalty-free withdrawals per year. Additional withdrawals can be made, but these will incur an interest penalty of 50 days’ loss of interest.
Principality Building Society offers the second-best rate in this category. Its Online Limited Access Issue 2 account has a rate of 0.90% AER and interest is paid yearly. The minimum opening balance is £1, and the account can only be opened and managed online. Savers can make up to three penalty-free withdrawals per year and closing the account is included as a withdrawal. The building society states that savers cannot make more than three withdrawals a year, and once this limit is reached, savers must wait until the next year or have a material reduction to their interest rate applied. The level of this reduction is not declared.

The Leeds Building Society Double Access Saver has an interest rate of 0.80% AER and is the third-best rate currently available. Interest is paid yearly, and the minimum opening balance is £5,000. The account can be both opened and managed in branch and by post. Savers can make two withdrawals per calendar year and after this, any further withdrawals will result in a 30-day loss of interest penalty.

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.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy