The best savings rates this week 10.01.20 | moneyfacts.co.uk
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Derin Clark

Derin Clark

Online Reporter
Published: 10/01/2020

Savers who were hoping that providers would increase rates on savings accounts in the new year will be disappointed to see that there has been little movement at the top of the chart. Saying this, further down the charts has seen more activity, but unfortunately for savers this has resulted in a number of rate reductions or withdrawals.

Meanwhile, there was some hope for savers when the Financial Conduct Authority (FCA) set out proposals to try to improve savings rates by suggesting the introduction of a single easy access rate (SEAR) on easy access accounts. However, whether this proposal becomes regulation and what impact this has on saving rates has yet to be determined.

The best savings rates this week 10.01.20

Provider Account Term Rate AER
UBL UK 5 Year Fixed Term Deposit Five years 2.38%
Bank of London and The Middle East Premier Deposit Account Three years 2.10% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account Two Years 1.95% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account One year 1.80% (expected profit rate)

Remaining at the top of the fixed rate bond chart this week was UBL UK offering 2.50% gross on maturity on its 5 Year Fixed Term Deposit account. This account requires a £2,000 minimum opening deposit and can be both opened and managed in branch and by post. There are also versions of this account that pay interest on anniversary and monthly, both at a lower gross rate.

As well as this, Bank of London and The Middle East (BLME) also remained at the top of the three, two and one year charts this week with its Premier Deposit Account. The three-year version of this account pays an expected profit rate of 2.10% gross on its anniversary, the two-year version pays an expected profit rate of 1.95% gross on its anniversary and the one-year version pays an expected profit rate of 1.80% gross on maturity. All these accounts require an opening minimum deposit of £1,000. They can only be opened online and then only managed by post. To open these bonds, you must have or open a BLME transfer account to hold funds pending investment.

The best easy access savings rates

Provider Account Notice Rate AER
Gatehouse Bank Easy Access Account None 1.40% (expected profit rate)
Cynergy Bank Online Easy Access Account – Issue 26 None 1.36% (includes a 0.61% bonus for 12 months)
Buckinghamshire Building Society Single Access Saver Instant 1.35%
Chelsea Building Society 1 Year Limited Access Saver Issue 2 None 1.35%
Ford Money Flexible Saver None 1.35%
Yorkshire Building Society 1 Year Limited Access Saver Issue 2 None 1.35%

A number of rate reductions has seen just two providers offer the most competitive rates in the easy access chart this week, while six providers offer the third-best rate. Gatehouse Bank offers the most competitive rate with its Easy Access Account paying an expected profit rate of 1.40% gross on its anniversary. This account requires a minimum opening deposit of £1,000 and allows unlimited further additions. Unlimited withdrawals are also allowed via a nominated account. It can only be opened and managed online.

Cynergy Bank is second in the chart this week with its Online Easy Access Account – Issue 26 paying 1.36% gross on its anniversary. This rate includes a 0.61% bonus for 12 months. To open the account, savers need a minimum deposit of just £1 and, once open, they can make unlimited further additions. Unlimited withdrawals are also permitted via a nominated account. This account can also only be opened and managed online.

Four providers are currently offering 1.35% gross in the easy access chart this week. Buckinghamshire Building Society offers 1.35% gross yearly on its Single Access Saver, which requires a minimum opening deposit of £100. This account allows unlimited further additions, but restricts withdrawals to one penalty-free withdrawal per annum, with the account being closed upon a second withdrawal. It can be both opened and managed in branch and by post.
Chelsea Building Society pays 1.35% gross on its anniversary on its 1 Year Limited Access Saver Issue 2, which requires an opening minimum deposit of £100. This account allows unlimited further additions, while withdrawals are restricted to one withdrawal day per account year. It can only be opened and managed online. After 12 months the account reverts to Limited Access Saver Issue 1.

Ford Money’s Flexible Saver pays 1.35% gross on its anniversary on an opening minimum deposit of just £1. This account allows unlimited further additions and withdrawals. It can be opened online or by phone and then managed online. There is also a version of this account that pays interest monthly at a slightly lower gross rate.

Yorkshire Building Society offers 1.35% gross on its anniversary on its 1 Year Limited Access Saver Issue 2, which requires a £100 minimum deposit to open. This account allows unlimited further additions while withdrawals are restricted to one withdrawal day per account year. Savers should be aware that this account reverts to a Limited Access Saver Issue 1 after 12 months. It can only be opened and managed online.

The best notice account rates

Provider Account Notice Rate AER
Investec Bank plc Notice Plus (0% immediate access) 95 days 1.80%
Bank of London and The Middle East 90 Day Notice Account (Issue 1) 90 days 1.71% (expected profit rate)
Charter Savings Bank 60 Day Notice – Issue 13 60 days 1.50%
Aldermore 30 Day Notice Issue 7 30 days 1.30%

There has been no movement at the top of the notice charts this week with Investec Bank plc continuing to offer the top rate of 1.79% gross monthly on its Notice Plus (0% immediate access). This account is only available to existing Investec clients via Investec Online and requires a substantial opening minimum deposit of £10,000. It allows unlimited further additions and withdrawals are permitted subject to 95 days’ notice. A loyalty rate of 0.05% is added to the account if notice is not placed for 90 days. It can be opened online and then managed online, by phone and mobile app. There are other versions of this account that have a shorter notice period offering a lower gross rate.

The best rate in the 90 day notice chart once again came from BLME this week with its 90 Day Notice Account (Issue 1) paying an expected profit rate of 1.70% gross quarterly. This account requires a substantial opening minimum deposit of £10,000. It allows unlimited further additions, while withdrawals are permitted subject to 90 days’ notice. This account can only be opened and managed online.

Topping the 60 day chart this week was Charter Savings Bank with its 60 Day Notice – Issue 13 paying 1.50% gross on its anniversary. A deposit of £5,000 is required to open this account, which allows unlimited further additions. Withdrawals are permitted subject to 60 days’ notice. This account can only be opened and managed online, but there is an option for a postal version of this account offering the same rate. There is also a version of this account that pays interest monthly at a slightly lower gross rate.

Aldermore remained at the top of the 30 day chart this week with its 30 Day Notice Issue 7 paying 1.30% gross on its anniversary on a £1,000 opening minimum deposit. This account allows unlimited further additions and permits withdrawals subject to 30 days’ notice. This account can only be opened and managed online.

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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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