Derin Clark

Derin Clark

Online Reporter
Published: 16/08/2019

This week it was revealed that the rate of inflation had risen to 2.1% in July, which meant that savers wanting to put their money into an account that matched or beat inflation had to choose a fixed rate account. Moneyfacts.co.uk research found that just 65 fixed rate bonds and two fixed rate ISAs (based on a £10,000 deposit) could match or beat inflation and, of these, only 57 fixed rate bonds and one fixed ISA paid more than 2.1%.

The best fixed rate bonds savings rates

Provider Account Term Rate AER
Bank of London and The Middle East Premier Deposit Account Seven year bond 2.80% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account Five year bond 2.75% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account Three year bond 2.55% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account Two year bond 2.35% (expected profit rate)
Bank of London and The Middle East Premier Deposit Account One year bond 2.10% (expected profit rate)

All the top rates in the fixed rate bond charts offered rates that matched or beat inflation this week, with the highest rate overall from Bank of London and The Middle East (BLME), which offers an expected profit rate of 2.80% on the seven year version of its Premier Deposit Account. In fact, once again BLME topped the chart for all terms this week with its Premier Deposit Account. The five year version offers an expected profit rate of 2.75%, the three year version offers an expected profit rate of 2.55%, the two year version offers an expected profit rate of 2.35%, and the one year version offers an expected profit rate of 2.10%. All versions of this account pay profit on anniversary and require a minimum opening deposit of £1,000; in addition to this, to open any of these accounts, a BLME transfer account to hold funds pending investment is required. Once opened, none of the accounts allow further additions or withdrawals to be made. They can only be opened online and then managed by post.

The best easy access savings rates

Provider Account Term Rate AER
Marcus by Goldman Sachs® Online Savings Account None 1.50% (including a 0.15% bonus for 12 months)
Virgin Money Double Take E-Saver Issue 10 None 1.50%
Virgin Money Man Utd Double Take E-Saver Issue 5 None 1.50%
Shawbrook Bank Easy Access – Issue 15 None 1.48%
Chorley Building Society Postal and Branch Accessible Saver Account None 1.45%

While savers won’t find any inflation-beating rates in the easy access savings chart, these accounts are still a great option for those wanting to be able to access their funds quickly. The accounts offering the top rate in this chart, that don’t require a linked product, are from Marcus by Goldman Sachs® and Virgin Money, both offering 1.50%. Marcus by Goldman Sachs® pays this rate, which includes a 0.15% bonus for 12 months, on its Online Savings Account. This account pays interest monthly and, to open, a deposit isn’t needed but applicants do need to have a UK mobile number. Once open, savers can make unlimited further additions and withdrawals. This account can only be opened online, but can then be managed by phone as well.

Virgin Money offers the chart-topping rate of 1.50% on both its Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 accounts. These accounts are very similar and both require an opening minimum deposit of £1, pay interest yearly and allow unlimited further additions. Savers should be aware that withdrawals from these accounts are limited to two per calendar year including closure, so they might not be a good option for those wanting to regularly access their funds. These accounts can only be opened and manged online and they both offer versions that pay interest monthly at a slightly reduced rate. As well as this, the Man Utd Double Take E-Saver Issue 5 comes with the incentive of 10 entries into a prize draw for every month the account is open, and one extra entry for every £50 held in the account, to win prizes including matchday tickets and signed shirts.

The second-best rate in the chart was offered by Shawbrook Bank on its Easy Access – Issue 15 paying 1.48%. Savers need a minimum deposit of £1,000 to open this account, which pays interest on anniversary. This account must be opened online but can then be managed by phone as well, and, once open, allows unlimited further additions and withdrawals. There is also a version of this account that pays interest monthly at a slightly lower rate.

Another competitive rate in the easy access chart this week was offered by Chorley Building Society’s Postal and Branch Accessible Saver Account, which pays 1.45%. As this account can be opened and managed in branch, as well as by post, it is a good option for those who prefer face-to-face banking. It pays interest yearly and requires a minimum opening deposit of £500. Unlimited further additions can be made, although savers should be aware that while unlimited withdrawals are permitted, a lower rate is paid if more than one withdrawal is made per account year.

The best notice account rates

Provider Account Notice Rate AER
PCF Bank 180 Day Notice Deposit Issue 1 180 days 1.85%
OakNorth 90 Day Notice Deposit 90 days 1.77%
Charter Savings Bank 60 Day Notice – Issue 10 60 days 1.56%
Secure Trust Bank 30 Day Notice Account 30 days 1.55%

None of the accounts in the notice account charts offer savers an inflation-beating return, but there are still some highly competitive rates to be found. The best rate overall came from PCF Bank, which offers 1.85% on its 180 Day Notice Deposit Issue 1. This account pays interest on anniversary and requires a minimum deposit of £1,000 to open. Savers can make unlimited further additions and withdrawals, although all withdrawals are subject to 180 days’ notice. The account can be opened online and by post, and then managed by phone as well.

OakNorth also offered a highly competitive rate in the chart this week, with its 90 Day Notice Deposit paying 1.77% monthly. This account topped the ‘up to 90 days’ chart and requires an opening deposit of just £1. It accepts unlimited further additions and withdrawals are also allowed, but subject to 90 days’ notice. This account can only be opened and managed online.

Due to a product withdrawal by Secure Trust Bank, this week Charter Savings Bank topped the ‘up to 60 days’ chart, with its 60 Day Notice – Issue 10 paying 1.56%. This account pays interest on anniversary and requires a significant deposit of £5,000 to open. Unlimited further additions are permitted, as are withdrawals, but all withdrawals are subject to 60 days’ notice. This account can only be opened and managed online.

Secure Trust Bank once again topped the ‘up to 30 days’ chart this week, with its 30 Day Notice Account offering 1.55% on an opening deposit of £1,000. This account pays interest quarterly and allows unlimited further additions. Four interest withdrawals are allowed per annum without penalty, while three capital withdrawals are permitted per annum on 30 days’ notice. This account can only be opened online and then managed by phone as well.

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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