This week, figures from Moneyfacts.co.uk revealed that the average notice account rate has risen to 1.15% AER, which is the highest seen since October 2012 when it stood at 1.19% AER. In addition to this, the top five notice account rates in the market have also improved and are now paying an average of 1.88 AER%, an increase from 1.62% AER a year ago. Saying this, savers looking for the best rates this week will still have to lock their money away into a long-term fixed account, with the highest rate coming from a five-year bond that was offering an expected profit rate of 2.75%. The best rate in the notice account chart was 1.92% AER on a 90-day notice account, while in the easy access chart the top rate on offer without opening restrictions was 1.50% AER.
The best saving rates on offer this week are once again in the fixed rate bond chart, but to secure the top three rates a minimum deposit of £1,000 is needed. Two accounts are offering an expected profit rate of 2.75%. Bank of London and The Middle East (BLME) is offering this on its Premier Deposit Account, a seven-year bond that pays profit on each anniversary. Once open, it does not accept further additions or withdrawals, and it can only be opened online and then managed by post. To open this bond a BLME transfer account to hold funds pending investment.
Gatehouse Bank was also offering an expected profit rate of 2.75% on its Fixed Term Deposit, a five-year bond that pays profit each anniversary. This bond also doesn’t accept further additions or withdrawals and it can only be opened and managed online.
BLME was third in the chart this week with the five-year version of its Premier Deposit Account, offering an expected profit rate of 2.70%. This bond also pays profit each anniversary and doesn’t accept further additions or withdrawals. The bond must be opened online and then managed by post, and a BLME transfer account is required to hold funds pending investment.
There have been several changes at the top of the easy access savings chart this week. Earlier in the week, Beehive Money matched the top rate on offer in its sector with its Beehive Online Saver, offering 1.50% AER variable from a minimum deposit of £2,500. The interest on this online-only account is paid yearly, and it allows further additions and withdrawals. Cynergy Bank increased the rate on its Online Easy Access Account – Issue 23 so that it is now offering 1.50% AER variable, including a 0.50% bonus for 12 months, from a minimum deposit of £1, which moves it into second place in the charts. This online-only account pays interest on its anniversary and allows further additions and withdrawals.
These changes have moved Marcus by Goldman Sachs® into third place this week, with its Online Savings Account that continues to offer 1.50% AER variable, including a 0.15% bonus for 12 months, from a minimum deposit of £1. The interest is paid monthly with this account, and it allows further additions and withdrawals. Applicants need to have a UK mobile number and must open the account online, but can then be managed by phone as well.
As with this week’s top bonds, the best rates in the notice account chart can only be obtained with a minimum opening deposit of £1,000. The top rate this week came from Secure Trust Bank, which is offering 1.92% AER variable on its 90 Day Notice Account. The interest on this account is paid quarterly and once opened it allows further additions. Withdrawals are restricted to four interest withdrawals per annum without penalty and three capital withdrawals per annum subject to 90 days’ notice. The account must be opened online but can then be managed my phone as well.
In second place this week was Hampshire Trust Bank, offering 1.90% variable on its 120 Day Notice (Issue 3). Interest is paid on its anniversary and the account allows further additions. Withdrawals are allowed via a nominated bank account subject to 120 days’ notice. The account can be opened online or by post and then managed by both of these ways and by phone. Third place this week was taken by Gatehouse Bank’s 120 Day Notice Account offering an expected profit rate of 1.87%. This online-only account pays interest on its anniversary and allows further additions. Withdrawals are permitted to a nominated account subject to 120 days’ notice.
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.