The best savings rates this week 11.12.20

The week savers will see that many of the best fixed rates have reduced again. Savers need to also keep an eye on future reductions in easy access rates with ICICI Bank UK publicising planned reductions in January. See more in our full round up of savings accounts below.

Savers should also check if they hold any savings or funds with banks that hold their banking licences outside in the UK. After the 31 December 2020 passporting arrangements for EU banks to operate in the UK will cease but your funds will still be protected by the overseas scheme if the bank hasn’t become authorised in the UK.

^{Note: accounts not covered by the Financial Services Compensations Scheme have not been included.}

• Zenith Bank (UK) Ltd – Raisin UK 3 Year Fixed Term Deposit
• Arbuthnot Direct – 3 Year Fixed Term Deposit Issue 4
• Close Brothers Savings – Fixed Rate Bond
• Ford Money – Fixed Saver 3 Year
• UBL UK – 3 Year Fixed Term Deposit (note the option for interest paid on maturity has a gross rate of 1.01%)
• Vernon Building Society – Fixed rate Bond until 31st January 2023

Savers need to be aware that after the 31 December 2020 any funds held with AgriBank will not be protected under either the UK’s Financial Services Compensation Scheme (FSCS) but by the Maltese deposit protection scheme.

Ikano Bank is a Swedish Bank and offers a competitive five-year fixed rate bond at 1.26% gross. Ikano Bank is in the process of getting a UK banking licence. If this remains unconfirmed on 1 January 2021 then savers funds will be protected by the Swedish deposit protection scheme.

Read more in our guide to depositor protection schemes.

There is no change in the best rates available for a notice account this week. UBL UK continues to offer three of the best notice rates; the 90 Day Ameen Islamic Notice (expected profit rate), the 90 Day Notice and 35 Day Notice all at 1.00% gross with interest paid half-yearly. These accounts can be opened with a £1 deposit in branch or by post. They can then be operated in the same way. Savers that require earlier access will incur a 35-day or 90-day interest penalty depending on the account opened.
All the above UBL UK accounts are being reduced to 0.75% on 25.1.21.