Derin Clark

Derin Clark

Online Reporter
Published: 17/05/2019

Once again the changes to the charts this week have been minimal with just a few changes in the overall savings rates on offer. The first of these is Sainsbury's Bank pushing Paragon Bank into fourth place in the easy access no bonus comparison tables. Paragon, who made their entry straight into third place last week, have been overtaken by Sainsbury's Bank's Defined Access Saver – Issue 11 paying 1.47%. The top rate in this chart remains at 1.50% AER while the same rate continues to top the with bonus easy access chart. As with last week, the best rate in the savings charts remains in the long-term fixed rate chart, that offers savers an expected profit rate of 2.75% AER on a five-year bond. The medium-term fixed rate charts also remain highly competitive with savers able to obtain an expected profit rate of 2.55% AER on a three-year bond. Rates remain lower in the short-term fixed chart, where savers can still get an above-inflation expected profit rate of 2.32% AER on an 18-month bond.

The best easy access savings rates 

The best bonus-free easy access savings rates

  • Virgin Money, Double Take E-Saver Issue 10 – 1.50% AER
  • Virgin Money, Man Utd Double Take E-Saver Issue 5 – 1.50% AER
  • Sainsbury's Bank, Defined Access Saver Issue 11 – 1.47% AER

Topping the bonus-free easy access chart once again this week is Virgin Money with a rate of 1.50% AER being offered on two of its saving products. For a minimum deposit of just £1 savers can get this rate on Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5. Both accounts can only be opened and managed online and allow unlimited additions, although withdrawals are restricted to two withdrawals per calendar year including closure. The Man Utd Double Take E-Saver has the added incentive of giving savers 10 entries into the prize draw for every month the account is open and one extra entry for every £50 held in the account.

Paragon Bank which was new to the chart last week has in turn, been supplanted by another new entry from Sainsbury's Bank. Their Defined Access Saver – Issue 11 that is currently paying a variable rate of 1.47% AER. However, this account has tiered rates of interest meaning savers must have a minimum balance of £1,000 to qualify for the top rate. Conversely, balances in excess of £500,001 will only attract an interest rate of 0.50%. Opening and management is online and by telephone only.

For those looking for an easy access account with bonus the top rate in this chart is once again 1.50% AER, including 0.15% bonus for 12 months, being offered by Marcus by Goldman Sachs®. The Online Savings Account does not require a minimum opening deposit and allows unlimited further additions (via a nominated account) and withdrawals. This account, which must be opened online but can then be managed by phone as well, requires applicants to have a UK mobile phone number to open the account.

The best short-term fixed rate savings accounts

The best short-term fixed rates this week:

  • Al Rayan Bank, Fixed Term Deposit – 2.32% AER (expected profit rate)
  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.30% AER (expected profit rate)
  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.20% AER (expected profit rate)

Sharia'a-compliant accounts continue to dominate the fixed rate charts again this week, including the short-term fixed rate savings accounts. The top rate in this chart was being offered by Al Rayan Bank, which was offering an expected profit rate of 2.32% AER (2.30% gross) on its Fixed Term Deposit. This 18-month bond requires a minimum investment of £1,000 and once opened does not allow further additions or withdrawals. It can be both opened and managed online, by post, phone, in branch and through its app.

Bank of London and The Middle East (BLME) placed second and third in the chart this week with two versions of its Premier Deposit Account (Anticipated Profit Rate). The 18-month bond offers 2.30% AER while the one-year bond offers 2.20% AER. Both accounts require a minimum investment of £1,000 and do not allow further additions or withdrawals once opened. These accounts must be opened online before becoming postal-operated. Savers should note that to open these accounts, a BLME transfer account to hold funds pending investment is needed.

The best two and three-year fixed rate savings accounts

The best medium-term fixed rates this week:

  • Gatehouse Bank, Fixed Term Deposit – 2.55% AER (expected profit rate)
  • Al Rayan Bank, Fixed Term Deposit – 2.52% AER (expected profit rate)
  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.50% AER (expected profit rate)
  • Al Rayan Bank, Fixed Term Deposit – 2.42% AER (expected profit rate)

The best rate being offered from medium-term fixed rate saving accounts this week was again from Gatehouse Bank offering 2.55% AER on the three-year version of its Fixed Term Deposit. Savers can get this rate from an opening deposit of £1,000 while further deposits and withdrawals and not allowed. This account must be both opened and operated online.

Al Rayan Bank was in second place on the three-year fixed rate chart and topped the two-year fixed rate chart with two versions of its Fixed Term Deposit accounts. The

36-month bond offers savers 2.52% AER (2.50% gross), while the 24-month version offers 2.42% AER (2.40% gross). Both accounts require a minimum deposit of £1,000 and do not allow further additions or withdrawals once opened. They can be opened and managed online, by post, phone, in branch and through its app.

Another competitive three-year rate this week came from BLME who increased their rates by 0.10% to 2.50% AER on its Premier Deposit Account (Anticipated Profit Rate). To open this account a minimum deposit of £1,000 is required and it can only be opened online and then managed by post. Further additions or withdrawals are not permitted. Savers should note that a BLME transfer account to hold funds pending investment is needed to open this account.

The best long-term fixed rates this week:

  • Gatehouse Bank, Fixed Term Deposit – 2.75% AER (expected profit rate)
  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.75% AER (expected profit rate)
  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.70% AER (expected profit rate)

To get the best savings rates this week, savers would again need to lock their money into a long-term fixed rate account. Gatehouse Bank was offering the top expected profit rate of 2.75% AER on the five-year version of its

Fixed Term Deposit. This bond requires a minimum investment of £1,000 to open and does not allow further additions or withdrawals. This account must be both opened and operated online

BLME was in second and third place on the long-term chart this week with its Premier Deposit Account (Anticipated Profit Rate). The seven-year version of this account offers savers an expected profit rate of 2.75% AER, while the five-year version offers 2.70% AER. To open either version a minimum deposit of £1,000 is required, as is a BLME transfer account to hold funds pending investment. These accounts do not allow further additions or withdrawals once opened and must be opened online before then being managed by post.

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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