The Best Savings Rates This Week 18.12.20 | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 18/12/2020

This week’s announcement that inflation has fallen to 0.3% will have provided savers with some relief as inflation-beating rates are now available in the easy access, notice account and fixed rate bond charts as a result. Saying this, savings rates have fallen to historic lows this year and, with negative interest rates still a possibility, are likely to stay low moving into 2021. As such, savers should keep watch on the savings charts and act quickly when new competitive rates are launched.

As well as this, 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. For more information about how savings are protected, read our guide on depositor protection schemes.

The best fixed rate bond savings rates

Provider Account Term Rate AER
Shawbrook Bank 7 Year Fixed Rate Bond Issue 6 Seven years 1.35%

Shawbrook Bank

UBL UK

5 Year Fixed Rate Bond Issue 33
5 Year Fixed Term Deposit

Five years

Five years

1.25%

1.25%

Bank of London and The Middle East
Zenith Bank (UK) Ltd

Arbuthnot Direct

Close Brothers Savings
Ford Money
Tandem Bank

UBL UK

Premier Deposit Account
Raisin UK – 3 Year Fixed Term Deposit
3 Year Fixed Term Deposit Issue 4
Fixed Rate Bond
Fixed Saver 3 Year
Tandem 3 Year Fixed Saver
3 Year Fixed Term Deposit

Three years

Three years

Three years

Three years
Three years
Three years

Three years

1.00% (expected profit rate)
1.00%

1.00%

1.00%
1.00%
1.00%

1.00%

Ahli United Bank (UK) plc Raisin UK - 2 Year Fixed Term Deposit Two years 1.04%
Tandem Bank Tandem 1 Year Fixed Saver One year 0.80%

 

The top-paying fixed rate bond this week came from Shawbrook Bank, which pays 1.35% gross on anniversary on its 7 Year Fixed Rate Bond Issue 6. A £1,000 minimum deposit is needed to open this account. It must be opened online, but can then be managed online and by phone. There is also a version of this account that pays interest monthly at a lower gross rate of 1.34%.

In the five year fixed rate bond chart, both Shawbrook Bank and UBL UK had accounts that paid the highest AER. Shawbrook Bank’s 5 Year Fixed Rate Bond Issue 33 pays 1.25% gross on a £1,000 minimum opening deposit. This account can only be opened online, but can then be managed online and by phone. There is a version that pays interest monthly at a slightly lower gross rate of 1.24%. UBL UK pays a higher gross rate of 1.28% on maturity on its 5 Year Fixed Term Deposit. There are also versions of this account that pays 1.25% gross on anniversary and 1.24% gross monthly. All accounts require a £2,000 minimum deposit to open. They can be both opened and managed in branch and by post.

Seven accounts offered the top-paying three year fixed bond rate this week. Bank of London and The Middle East (BLME) pays an expected profit rate of 1.00% gross on anniversary on its Premier Deposit Account. A £1,000 minimum deposit is needed to open this account, along with a BLME transfer account to hold funds pending investment. This account must be opened online and then managed by post. Zenith Bank (UK) Ltd pays 1.00% gross on maturity on a £1,000 minimum opening deposit on its Raisin UK – 3 Year Fixed Term Deposit. This account must be opened online but can then be managed online, by post and by phone. It comes with the added incentive of Raisin UK offering a bonus or Amazon Gift Card of up to £50 when a first savings account is opened via its website (terms and conditions apply). Arbuthnot Direct’s 3 Year Fixed Term Deposit Issue 4 pays 1.00% gross on anniversary. A £10,000 minimum deposit is needed to open this account. It can only be opened and managed online. Close Brothers Savings pays 1.00% gross yearly on its Fixed Rate Bond, which requires a £10,000 minimum deposit to open. This account must be opened online but can then be managed online and by phone. Ford Money pays 1.00% gross on anniversary or monthly on its Fixed Saver 3 Year. A £500 minimum deposit is needed to open this account, which can be opened online or by phone but must be managed online. Tandem Bank’s Tandem 3 Year Fixed Saver pays 1.00% gross on anniversary on a £1,000 minimum opening deposit. This account must be opened online but can be managed by post and by phone. UBL UK pays 1.01% gross on maturity on its 3 Year Fixed Term Deposit, as well as offering versions that pay 1.00% gross on anniversary or monthly. All versions require a £2,000 minimum deposit to open and can be opened and managed in branch and by post.

The top rate in the two year fixed rate bond chart this week comes from Ahli United Bank (UK) plc, which pays 1.04% gross on maturity on its Raisin UK – 2 Year Fixed Term Deposit. This account requires a £1,000 minimum deposit to open. It must be opened online but can be managed online, by post and by phone. It comes with the added incentive of Raisin UK offering a bonus or Amazon Gift Card of up to £50 when a first savings account is opened via its website (terms and conditions apply).

Tandem Bank had the top-paying one year fixed rate bond this week, with its Tandem 1 Year Fixed Saver paying 0.80% gross on anniversary. This account requires a £1,000 minimum deposit to open. It must be opened online and can then be managed by post and by phone.

Compare the best fixed rate bonds

Compare the best fixed rate bonds on our charts.

The best easy access savings rates

Provider Account Maximum number of withdrawals allowed Rate AER
ICICI Bank UK SuperSaver Savings Account Unlimited 0.75%

Aldermore


Earl Shilton Building Society

Double Access Account Issue 1

Progress

Lower rate if more than two withdrawals are made pa
Lower rate if more than six withdrawals are made pa

0.60%


0.60%

Investec Bank plc
Market Harborough Building Society
Online Flexi Saver
Save & Support Plus
Unlimited
Transaction charge on withdrawals that leaves balance below £100
0.55%
0.55%

 

The best rate in the easy access savings account chart this week came from ICICI Bank UK, which pays 0.75% gross monthly on its SuperSaver Savings Account. This rate will reduce to 0.60% gross on 11 January 2021. A minimum deposit of £1 is needed to open this account. It is only available to new and existing HomeVantage Current Account customers. This account allows unlimited further additions via current account. Withdrawals can be made but must be made via a linked ICICI Bank current account. The account can be opened online, in branch or by phone and then operated online, in branch, by post and via mobile app.

Aldermore and Earl Shilton Building Society both had the second-best easy access account rates this week. Aldermore pays 0.60% gross on anniversary or monthly on its Double Access Account Issue 1. A £1,000 minimum deposit is needed to open this account. Unlimited further additions are allowed. On withdrawals, a lower rate is paid if more than two withdrawals are made per annum. This account can only be opened and managed online. Earl Shilton Building Society pays 0.60% gross yearly on its Progress account, which requires a £100 minimum deposit to open. This account is restricted to existing customers and/or those who live within certain postcodes who are aged between 18 and 49. Further additions are allowed. Up to six withdrawals per annum are allowed but if more than six withdrawals are made a lower rate is paid. It can be both opened and managed in branch and by post.

Both Investec Bank plc and Market Harborough Building Society offered the third-best easy access account rate this week. Investec Bank plc pays 0.55% gross monthly on its Online Flexi Saver, which requires a £5,000 minimum deposit to open. This account allows unlimited further additions and withdrawals. It must be opened and managed online. Market Harborough Building Society pays 0.55% gross on its Save & Support Plus account, which requires a £1 minimum deposit to open. This account is only available to existing members who have already registered for the Society’s Online Service. It allows further additions. Withdrawals are permitted but a transaction charge is applied when withdrawals made leave the balance below £100. Savers should be aware that if they de-register from the Society’s Online Service, the account will change to a Save & Support account within 30 days. This account can be both opened and managed online, in branch and by post. A donation will be made to Market Harborough BS charity of the year per annum.

Compare the best easy access savings accounts

The best notice account rates

Provider Account Notice Rate AER
ICICI Bank UK Notice Savings Account 95 days 0.85%
Ecology Building Society 90-Day Notice 90 days 0.80%
Harpenden Building Society
ICICI Bank UK

30 Days’ Notice

Notice Savings Account

30 days

45 days

0.75%

0.75%

 

The top notice account rate this week came from ICICI Bank UK, which pays 0.85% gross monthly on its Notice Savings Account (reducing to 0.55% on 15 March 2021). This account requires a £1 minimum deposit to open and is only available to new and existing HomeVantage Current Account customers. Further additions are allowed via a linked HomeVantage Current Account. Withdrawals can be made via a linked HomeVantage Current Account and subject to 95 days’ notice. This account can be both opened and managed online, in branch and by phone.

Ecology Building Society had the second-best notice account rate this week, with its 90-Day Notice account paying 0.80% gross yearly on a £25,000 minimum opening deposit. A lower rate of 0.70% gross is paid on deposits of £10,000, 0.50% gross on deposits of £5,000, and 0.35% gross on deposits of £500. This account is only available to existing customers since 7 February 2020. It allows further additions subject to a minimum amount of £25. Withdrawals can be made subject to 90 days’ notice and for a minimum of £250. The account can only be opened and managed by post.

Two notice accounts had the third-best notice account rate this week. Harpenden Building Society pays 0.75% gross half-yearly on its 30 Days’ Notice account, which requires a £1,000 minimum deposit to open. This account is only available to existing customers who have held an account prior to the 1 December 2013. It allows further additions. Withdrawals can be made subject to 30 days’ notice, or if notice is not given, earlier access is permitted on 30 days’ loss of interest on amounts withdrawn below £10,000, and penalty-free instant access withdrawals are allowed on balances above £10,000. This account can be opened in branch or by post and then managed online, in branch and by post. ICICI Bank UK pays 0.75% gross monthly on its Notice Savings Account (reducing to 0.45% on 25 January 2021), which requires a £1 minimum deposit to open. This account is only available to new and existing HomeVantage Current Account customers. Further additions are allowed via a linked Home Vantage Current Account. Withdrawals can be made via a linked Home Vantage Current Account and subject to 45 days’ notice. This account can be both opened and managed online, in branch and by phone.

Compare the best notice accounts

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy