The Best Savings Rates This Week 08.01.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 08/01/2021

Challenger banks continue to dominate the savings charts as we enter 2021. Savers hoping that the new year will lead to providers offering higher rates across the savings charts will be disappointed to see that there has not been much movement at the tops of the charts since December, and it is unlikely that rates will increase significantly at the beginning of 2021. Saying this, new higher rates are still entering the charts, but these rates often do not last for long and savers should act quickly to secure the best rates while they are available.

The best fixed rate bond savings rates

Provider Account Term Rate AER
Shawbrook Bank 7 Year Fixed Rate Bond Issue 6 Seven years 1.35%

Shawbrook Bank

UBL UK

United Trust Bank
Vanquis Bank

5 Year Fixed Rate Bond Issue 33
5 Year Fixed Term Deposit
UTB 5 Year Bond
Vanquis Bank Savings

Five years

Five years

Five years
Five years

1.25%

1.25%

1.25%
1.25%

Bank of London and The Middle East
Zenith Bank (UK) Ltd

Arbuthnot Direct

Close Brothers Savings
United Trust Bank
Vanquis Bank

Premier Deposit Account
Raisin UK – 3 Year Fixed Term Deposit
3 Year Fixed Term Deposit Issue 4
Fixed Rate Bond
UTB 3 Year Bond
Vanquis Bank Savings

Three years

Three years

Three years

Three years
Three years
Three years

1.00% (expected profit rate)
1.00%

1.00%

1.00%
1.00%
1.00%

Ahli United Bank (UK) plc Raisin UK - 2 Year Fixed Term Deposit Two years 1.04%
Ahli United Bank (UK) plc Raisin UK - 1 Year Fixed Term Deposit One year 1.00%

 

The top fixed bond rate this week continued to be offered by Shawbrook Bank, which pays 1.35% gross on anniversary on its 7 Year Fixed Rate Bond Issue 6. This account requires a £1,000 minimum deposit to open and must be opened online. Once opened, it can be managed online and by phone. There is a version of this account that pays interest monthly at a slightly lower gross rate of 1.34%.

Four providers offered the top-paying five year fixed bond rate this week. Shawbrook Bank pays 1.25% gross on anniversary on its 5 Year Fixed Rate Bond Issue 33. A £1,000 minimum deposit is needed to open this account. It must be opened online, but can then be managed online and by phone. There is a version of this account that pays interest monthly at a slightly lower gross rate of 1.24%. UBL UK pays a gross rate of 1.28% on maturity on its 5 Year Fixed Term Deposit, but also offers versions of this account that pays 1.25% gross on anniversary and 1.24% gross monthly. All versions require a £2,000 minimum deposit to open and can be both opened and managed in branch and by post. United Trust Bank’s UTB 5 Year Bond pays 1.25% gross on anniversary on a £5,000 minimum opening deposit. This account can only be opened online, but can then be managed online, by post and by phone. Vanquis Bank pays 1.25% gross on anniversary on its Vanquis Bank Savings account, which requires a £1,000 minimum deposit to open. This account must be opened online but can then be managed online, by post and by phone. There is a version of this account that pays interest monthly at a slightly lower gross rate of 1.24%.

Savers looking for the top three year fixed bond rate have six accounts to choose from this week. Bank of London and The Middle East (BLME) pays an expected profit rate of 1.00% gross on anniversary on its Premier Deposit Account. A £1,000 minimum deposit is needed to open this account, along with a BLME transfer account to hold funds pending investment. It can only be opened online and then must be managed by post. Zenith Bank (UK) Ltd pays 1.00% gross on maturity on its Raisin UK – 3 Year Fixed Term Deposit account, which requires a £1,000 minimum deposit to open. This account benefits from Raisin UK offering a bonus or Amazon Gift Card of up to £15 when a first savings account is opened via its website (terms and conditions apply). The account must be opened online and then can be managed online, by post and by phone. Arbuthnot Direct’s 3 Year Fixed Term Deposit Issue 4 account pays 1.00% gross on anniversary. A £10,000 minimum deposit is needed to open this account, which can only be opened and managed online. Close Brothers Savings pays 1.00% gross yearly on its Fixed Rate Bond, which requires a £10,000 minimum deposit to open. This account must be opened online but can then be managed online and by phone. United Trust Bank’s UTB 3 Year Bond pays 1.00% gross on anniversary on a £5,000 opening minimum deposit. This account can only be opened online but then managed online, by post and by phone. Vanquis Bank pays 1.00% gross on anniversary or monthly on its Vanquis Bank Savings account. A £1,000 minimum deposit is needed to open this account, which must be opened online but can be managed online, by post and by phone.

The top two and one year fixed bond rate this week both came from Ahli United Bank (UK) plc. Its Raisin UK – 2 Year Fixed Term Deposit pays 1.05% gross on maturity and its Raisin UK – 1 Year Fixed Term Deposit pays 1.00% gross on maturity. Both accounts require a £1,000 minimum deposit to open and both benefit from Raisin UK offering a bonus or Amazon Gift Card of up to £15 when a first savings account is opened via its website (terms and conditions apply). These accounts must be opened online but they can be managed online, by post and by phone.

Compare the best fixed rate bonds

The best easy access savings rates

Provider Account Maximum number of withdrawals allowed Rate AER
Earl Shilton Building Society Progress Lower rate paid if more than 6 withdrawals per annum 0.60%
ICICI Bank UK SuperSaver Savings Account Unlimited but all withdrawals via linked ICICI Bank current account only 0.60%
Investec Bank plc Online Flexi Saver Unlimited 0.55%
Market Harborough Building Society Save & Support Plus Transaction charge applied when withdrawal made that leaves balance below £100 0.55%

 

Two providers offered the top easy access savings account rate this week. Earl Shilton Building Society pays 0.60% gross yearly on its Progress account. This account requires a £100 minimum deposit to open and is only available to existing members and/or those living within certain postcode areas. It allows unlimited further additions. Withdrawals are restricted to six per annum, and if more withdrawals are made a lower interest rate of 0.10% is paid. The account can be both opened and managed in branch and by post. ICICI Bank UK pays 0.60% gross monthly on its SuperSaver Savings Account, which requires no minimum deposit to open. This account is only available to new and existing HomeVantage Current Account customers. It allows unlimited further additions and withdrawals. All transactions must be made via a linked ICICI Bank current account. The account can be opened online, in branch or by phone and then managed online, in branch, by post and via mobile app.

Two providers also offered the second-best easy access savings account rate this week. Investec Bank plc pays 0.55% gross monthly on its Online Flexi Saver, which requires a £5,000 minimum deposit to open. This account allows unlimited further additions and withdrawals. It must be opened and managed online. Market Harborough Building Society pays 0.55% gross yearly on its Save & Support Plus account. This account requires a £1 minimum deposit to open. It is only available to existing members who have already registered for the Society’s Online Service, and if de-registered from the Online Service, the account will change to a Sav & Support account within 30 days It allows unlimited further additions. Withdrawals are permitted but a transaction charge is applied when a withdrawal is made that leaves the balance below £100. This account can be both opened and managed online, in branch and by post.

Compare the best easy access savings accounts

The best notice account rates

Provider Account Notice Rate AER
ICICI Bank UK Notice Savings Account 95 days 0.85%
Ecology Building Society 90-Day Notice 90 days 0.80%
ICICI Bank UK Notice Savings Account 45 days 0.75%

 

ICICI Bank UK remained at the top of the notice chart paying 0.85% gross monthly on its 95-day Notice Savings Account. ICICI Bank UK also had the third-best notice account rate this week, with the 45-day version of its Notice Savings Account paying 0.75% gross monthly. Both versions require a £1 minimum deposit to open and are only available to new and existing HomeVantage Current Account customers. These accounts allow unlimited further additions. Withdrawals are permitted but are subject to 95 days’ notice on the 95-day version and 45 days’ notice on the 45-day version. All transactions must also be made via a linked HomeVantage Current Account. These accounts can be both opened and managed online, in branch and by phone. Savers should note that the 45-day version will reduce to 0.45% on 25 January 2021 and the 95-day option will reduce to 0.55% on 15 March 2021.

The second-best notice account rate this week came from Ecology Building Society, which pays 0.80% gross yearly on deposits of £25,000 on its 90-Day Notice account. This account pays lower rates of 0.70% at £10,000, 0.50% at £5,000 and 0.35% at the minimum opening deposit of £500. The account is only available to existing members since 7 February 2020. It allows unlimited further additions. Withdrawals can be made but are subject to 90 days’ notice. This account can only be opened and managed by post.

Compare the best notice accounts

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