The best savings rates this week 17.01.20 | moneyfacts.co.uk
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Derin Clark

Derin Clark

Online Reporter
Published: 17/01/2020

Inflation figures were released this week showing that during December 2019 inflation had fallen to 1.3%, the lowest it has been since November 2016. For savers this offers some good news, despite the continuous falling savings rates, as it means that more accounts are able to match or beat inflation. In fact, research carried out by Moneyfacts.co.uk shows that on the day the inflation figures were released 225 fixed rate bonds, 39 notice accounts and 13 easy access accounts (based on a £10,000 deposit) were able to match or beat inflation. Savers should be aware, however, that the fall in inflation increases the chance of a Bank of England base rate cut over the next few months, which could see savings rates decrease further.

The best fixed rate bond savings rates

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)

UBL UK has once again offered the top rate in the fixed rate bonds chart this week with its 5 Year Fixed Term Deposit paying 2.50% gross on maturity. This account requires a minimum deposit of £2,000 to open and can be both opened and managed in branch and by post. There are also versions of this account that pays interest on anniversary and monthly, both at a lower gross rate.

Bank of London and The Middle East (BLME) continued to dominate the three, two and one year charts this week, offering the top rate in all these charts with its Premier Deposit Account. The three-year version of this account pays an expected profit rate of 2.10% gross, the two-year option pays an expected profit rate of 1.95% gross and the one year version pays an expected profit rate of 1.80% gross. The three and two-year versions pay profit on their anniversaries, while the one-year version pays profit on maturity. They all require an opening minimum deposit of £1,000. These accounts 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)
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%

Gatehouse Bank remained at the top of the easy access chart this week with its Easy Access Account paying an expected profit rate of 1.40% gross on its anniversary. This account requires a minimum deposit of £1,000 to open and allows unlimited further additions. Unlimited withdrawals are also permitted via a nominated account. It can only be opened and managed online.

Cynergy Bank reduced the rate on its easy access account during the week, resulting in five providers offering the second-best gross rate of 1.35%. Chelsea Building Society offers this gross rate on its 1 Year Limited Access Saver Issue 2, which pays interest on its anniversary. To open this account, a minimum deposit of £100 is required. It is an online-only account that allows unlimited further additions, but withdrawals are restricted to one withdrawal day per account year. The account must be opened with new money to the institution and reverts to Limited Access Saver Issue 1 after 12 months.

Ford Money pays 1.35% gross on its anniversary on its Flexible Saver. This account requires just a £1 minimum deposit to open. It allows unlimited further additions and withdrawals. This account can be opened online or by phone before becoming online-only. There is also a version of this account that pays interest monthly at a slightly lower gross rate.

Yorkshire Building Society also pays 1.35% gross on its anniversary on its 1 Year Limited Access Saver Issue 2. Savers wanting to open this account require a £100 minimum deposit and, once opened, are able to make unlimited further additions. Withdrawals are restricted to one withdrawal day per account year. This account can only be opened and managed online. It must be opened with new money to the institution and reverts to Limited Access Saver Issue 1 after 12 months.

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)
Secure Trust Bank 60 Day Notice Account 60 days 1.50%
Secure Trust Bank 30 Day Notice Account 30 days 1.40%

Investec Bank plc continued to offer the top rate in the notice chart this week with its Notice Plus (0% immediate access) paying 1.79% gross monthly. Savers should be aware this is a highly restrictive account that is only available to existing Investec clients via Investec Online and requires a substantial opening minimum deposit of £10,000. This account allows unlimited further additions, while 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.

BLME continued to top the 90 day notice chart this week with its 90 Day Notice Account (Issue 1) paying an expected profit rate of 1.70% gross quarterly. This account requires an opening minimum deposit of £10,000 and allows unlimited further additions and withdrawals. This account can only be opened and managed online.

Secure Trust Bank was new to the top of both the 60 and 30 day notice charts this week. It topped the 60 day chart with its 60 Day Notice Account paying 1.49% gross quarterly, while its 30 Day Notice Account pays 1.39% gross quarterly. Both these accounts require a minimum opening deposit of £1,000 and allow unlimited further additions. Both accounts allow four interest withdrawals per annum, while three capital withdrawals are permitted per annum subject to 60 days’ notice on the 60-day version and 30 days’ notice on the 30-day option. They can both be opened online and then managed online and by phone.

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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