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The best savings rates this week

The best savings rates this week

Category: Savings
Author: Derin Clark
Date: 01/03/2019

The biggest savings news this week came from UK Finance data, which revealed that during 2018 savers became more cautious with their savings than the year before and have opted to put more money into instant access accounts over fixed term savings accounts. This increase has happened despite fixed rate and notice term accounts offering higher rates than instant access accounts, with savers seemingly willing to forgo higher rates in favour of gaining quick access to their money in the current economic climate.

In terms of rates, there was not much change at the top of the Best Buy charts for easy access savings accounts and short-term fixed-rate savings, but Gatehouse Bank increased the rates on some of its longer fixed-rate accounts.

Whichever type of savings account you are looking for, our round-up of the best savings rates this week will help to give you an idea of the deals currently available.

The best easy access savings rates (no bonus)

There was no movement at the top of the easy access savings accounts chart this week, with The Family Building Society once again taking first place with its Premium Saver (3). This account offers a gross/AER rate of 1.51% paid yearly and requires a minimum deposit of £15,000. As well as this, the account allows withdrawals and further payments. It can be opened online, by post and in branch and then managed by phone as well.

Second and third place were also non-movers this week, with both spots taken by Virgin Money. In second place was Double Take E-Saver Issue 10, which offers a gross/AER rate of 1.50% from a minimum deposit of £1. This account pays interest yearly and allows two withdrawals per calendar year including closure, it also allows unlimited further additions. It can only be opened and managed online.

The Man Utd Double Take E-Saver Issue 5 account takes third place offering a gross/AER rate of 1.50% paid yearly. A minimum deposit of £1 is needed to open this account and again it must be opened and managed online. This account allows two withdrawals each calendar year including closure and allows unlimited further additions. In addition to this, the account offers free entries into a monthly prize draw to win Man Utd merchandise.

The best easy access savings rates (with bonus)

Marcus by Goldman Sachs was once again topping the best easy access savings (with bonus) chart with its Online Savings Account. This account is still offering a rate of 1.49% gross (1.50% AER) and includes a 0.15% bonus for 12 months. There is no minimum opening deposit with this account and withdrawals and further additions are allowed. It must be opened online, but can then be managed over the phone as well, however, you must have a UK mobile phone number to be eligible.

In second place this week is Cynergy Bank's Online Easy Access Account Issue 21, which offers a rate of 1.50% gross/AER, with a 0.50% bonus for 12 months. With this account, interest is paid on its anniversary. Withdrawals can be made via a nominated account and further additions are also allowed. A minimum deposit of £1 is needed to open the account and it must be opened and managed online.

The third spot went to Tesco Bank this week with its Internet Saver. This account is offering a rate of 1.42% gross/AER, with a 0.87% bonus for 12 months. The account pays interest yearly, but the bonus interest is added at the end of the bonus term and not with the annual interest. It permits further additions and withdrawals subject to a maximum withdrawal limit of £10,000 to non-Tesco Bank accounts or £100,000 to Tesco Bank accounts. A minimum deposit of £1 is needed to open the account, which must be opened online and then managed online or by its mobile app.

The best short-term fixed savings rate

As with the easy access savings charts, there was little movement in the short-term fixed rate Best Buys this week and, once again, Al Rayan Bank took the top spot. Fixed Term Deposit offers an expected profit rate of 2.30% gross (2.32% AER) on a 18-month fixed bond. This account requires a minimum investment of £1,000 and it pays its profit quarterly. As is often the case with fixed rate accounts, once it is set up further additions, withdrawals and early access are not permitted. The account can be opened and managed online, by post, over the phone, in branch or through its mobile app.

The Bank of London and The Middle East (BLME) occupies second place this week with its Premier Deposit Account. This is an 18-month fixed bond account that pays an expected profit rate of 2.30% gross/AER. To open the account you must pay in a minimum of £1,000, but after this, withdrawals, early access and further additions are not permitted. The account must be opened online and then managed by post. To open a BLME bond you need to have a BLME Transfer account to hold funds pending investment.

Once again BLME also secured third place this week, this time with its Premier Deposit Account, which offers an expected profit rate of 2.20% gross/AER. This one-year bond account requires a minimum deposit of £1,000 and the profit is paid on maturity. Further additions, withdrawals and early access are not allowed with this account. The account can only be opened online and then managed by post. To open a BLME bond you need to have a BLME Transfer account to hold funds pending investment.

The best two-year fixed savings rates

Gatehouse Bank moved up the chart to take the top spot this week with its Raisin UK – 2 Year Fixed Term Deposit account. Offering an increased expected profit rate of 2.45%, this is a two-year fixed bond that requires a minimum deposit of £1,000 to open. Profit on this account is paid on anniversary. While withdrawals and early access is not permitted, further additions within the first five working days are allowed. The account can only be opened online, but then managed online, by post and over the phone. In addition to this, Raisin UK is offering a bonus of up to £100 when you open a savings account.

Al Rayan Bank slipped from first place to second place this week with its Fixed Term Deposit account. This 24-month fixed bond offers an expected profit rate of 2.40% gross (2.42% AER) and requires a minimum amount of £1,000 to open. Profit is paid quarterly. Once opened further additions, withdrawals and earlier access are not permitted. This account can be opened and managed online, by post, over the phone, in branch and through its mobile app.

Taking third place again this week is BLME with the two-year version of its Premier Deposit Account. This account offers an expected profit rate of 2.35% gross/AER that is payable on its anniversary. A minimum deposit of £1,000 is required to open the account. It must be opened online and can then only be managed by post. You cannot make further additions, withdrawals or gain early access. To open a BLME bond you need to have a BLME Transfer account to hold funds pending investment.

The best long-term fixed saving rates

This week Gatehouse Bank increased the rate on its Raisin UK - 5 Year Fixed Term Deposit to take the top spot. This five-year fixed bond is now offering an expected profit rate of 2.75% gross/AER on a minimum deposit of £1,000. The account doesn't allow withdrawals or early access to funds, but further additions (within the first five working days) are permitted. It can be opened online and then managed online, by post or over the phone. As well as this, Raisin UK is offering a bonus of up to £100 when you open a savings account.

BLME secured both second and third place this week with its seven-year fixed Premier Deposit Account offering an expected profit rate of 2.75% gross/AER and its five-year fixed Premier Deposit Account offering an expected profit rate of 2.70% gross/AER. A minimum deposit of £1,000 is needed to open both these accounts and both pay profit on their anniversary. The accounts can only be opened online and must then be managed by post. Once opened, these accounts do not allow additional payments, withdrawals or early access. To open a BLME bond you need to have a BLME Transfer account to hold funds pending investment.

Rates and details are correct at the time of publication (01.03.2019).

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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