The best savings rates this week 17.07.20

This week, the Consumer Prices Index (CPI) figures revealed that inflation during June has risen to 0.6%, the first time it has increased since January. Although rising inflation will be a disappointment to savers concerned about below-inflation interest eroding the long-term value of their savings, inflation remains low and there continues to be inflation-beating rates available across the charts.

This week, Bank of London and The Middle East (BLME) dominated the fixed rate bond chart, offering the top seven, five, three, two and one year rate. Overall, the best fixed rate bond saving rate this week was on the seven-year version of its Premier Deposit Account, which pays an expected profit rate of 1.70% gross on anniversary. The five-year version of its Premier Deposit Account pays an expected profit rate of 1.50% gross on anniversary, the three-year option pays an expected profit rate of 1.40% gross on anniversary, the two-year version pays an expected profit rate of 1.35% gross on anniversary and the one-year version pays an expected profit rate of 1.00% gross on maturity. All these accounts require a minimum deposit of £1,000 to open. As well as this, to open these accounts, a BLME transfer account to hold funds pending investment is needed. These accounts can only be opened online and then must be managed by post.

National Savings & Investments (NS&I) remained at the top of the easy access savings chart this week with its Income Bonds paying 1.15% gross monthly. This account is 100% backed by HM Treasury and requires a £500 minimum opening deposit. It allows unlimited further additions and withdrawals can be made at any time via a nominated account, but all transactions must be of a minimum of £500. It can be both opened and managed online, by post and by phone.

Both ICICI Bank UK and NS&I had the next-best easy access rate of 1.00% this week. ICICI Bank UK pays 1.00% gross monthly on its SuperSaver Savings Account, which is only available to new and existing HomeVantage Current Account customers. There is no minimum deposit required to open this account. It allows unlimited further additions. Withdrawals can be made at any time but must be made via a linked ICICI Bank current account. It can be opened online, in branch or by phone and then managed online, in branch, by post and via mobile app.

NS&I pays 1.00% gross yearly on its Direct Saver. This account is 100% back by HM Treasury. It requires a minimum opening deposit of just £1. Unlimited further additions are allowed. Withdrawals can be made at any time but must be made via a nominated account. This account can be both opened and managed online and by phone.