Derin Clark

Derin Clark

Online Reporter
Published: 19/07/2019

With the announcement that inflation (Consumer Price Index)remained at 2.0% during June, over 100 fixed rate bonds and fixed rate ISA were able to offer rates that matched or beat inflation. In fact, all the top rates in the fixed rate bonds chart this week were able to offer inflation-beating rates. For savers looking for an option that allows them more access to their funds, none of the best rates in either the easy access savings or the notice account charts were able to match the inflation rate this week, saying this, the rates in these charts remained highly competitive.

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 2.85% expected profit rate
Bank of London and The Middle East Premier Deposit Account Five-year bond 2.80% expected profit rate
Bank of London and The Middle East Premier Deposit Account Three-year bond 2.60% expected profit rate
Bank of London and The Middle East Premier Deposit Account Two-year bond 2.45% expected profit rate
Bank of London and The Middle East Premier Deposit Account 18-month bond 2.35% expected profit rate

Bank of London and The Middle East (BLME) continued to dominate the fixed rate bond charts this week, topping all the charts within this sector. The best fixed rate bond rate available was an expected profit rate of 2.85% on BLME’s Premier Deposit Account seven-year bond. BLME topped the five-year chart with its five-year version of this bond paying an expected profit rate of 2.80%, as well as the three-year chart with the three-year version paying an expected profit rate of 2.60%. The two-year version topped the two-year fixed rate bond chart offering an expected profit rate of 2.45%, while the 18-month version topped the one-year fixed rate chart paying an expected profit rate of 2.35%. All these market-leading bonds require a minimum deposit of £1,000 and do not allow further additions or withdrawals once they have been opened. They can only be opened online and then managed by post and, as well as this, to open any of these bonds a BLME transfer account is required to hold funds pending investment.  

The best easy access savings rates

Provider Account Term Rate AER
Cynergy Bank Online Easy Access Account – Issue 24 None 1.50%, includes 0.75% bonus for 12 months
Marcus by Goldman Sachs® Online Savings Account None 1.50%, includes 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%

Easy access savings accounts are a great choice for those looking for a more accessible savings option than fixed rate bonds, as they usually allow savers to make further additions and withdrawals. In return for greater access to their money, savers have to settle for a lower rate than that offered in the fixed rate bonds chart, which is evident by the fact that the top rate in the easy access savings chart pays 1.50%, a rate that was offered by three providers this week. Cynergy Bank was offering this rate on its Online Easy Access Account – Issue 24, which also includes a 0.75% bonus for 12 months. A deposit of just £1 is required to open this account, which allows unlimited further additions and withdrawals, although withdrawals must be made via a nominated account. This account can only be opened and managed online.

Also topping the easy access savings chart this week was Marcus by Goldman Sachs® with its Online Savings Account offering 1.50% that includes a 0.15% bonus for 12 months. This account, which pays interest monthly, allows further additions via a nominated account and withdrawals and can be opened without any money being paid into the account, although a UK mobile number is needed to open the account. It must be opened online but can then be managed by phone as well.

Virgin Money had two accounts that offer the top rate of 1.50% this week. Both Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 were offering this rate on a minimum deposit of just £1. These accounts allow unlimited further additions, however withdrawals are restricted to two per calendar year, which includes closure. These accounts can only be opened and managed online and both offer versions that pay interest monthly. The Man Utd Double Take E-Saver Issue 5 has the added incentive to football fans of offering 10 entries into a prize draw for every month the account is open and one extra entry for every £50 held in the account, with the ability to win matchday tickets, signed shirts and hospitality tickets. 

The second-best rate being offered in the chart once again came from Shawbrook Bank, offering 1.48% on its Easy Access – Issue 15, which requires a minimum opening deposit of £1,000. This account allows unlimited further additions and withdrawals, but withdrawals must be made via a nominated account. It can only be opened online and then can be managed both online and by phone. There is a version of this account that pays interest monthly. 

The best notice account rates

Provider Account Notice Rate AER
Gatehouse Bank 120 Day Notice Account 120 days 1.87% expected profit rate
OakNorth 90 Day Notice Deposit 90 days 1.77%

Secure Trust Bank

60 Day Notice Account 60 days 1.75%

Secure Trust Bank

30 Day Notice Account 30 days 1.55%

Notice accounts are often a great compromise between fixed rate accounts and easy access savings accounts, as they are normally more accessible than fixed rate accounts but offer higher rates than easy access accounts. The top rate being offered by a notice account this week was an expected profit rate of 1.87%, which came from Gatehouse Bank on its 120 Day Notice Account. This online-only account requires a £1,000 minimum deposit and allows further additions. Withdrawals are also permitted but must be made via a nominated account and are subject to 120 days’ notice.

OakNorth topped the 90-day notice account chart this week with its 90 Day Notice Deposit account offering a rate of 1.77%. A minimum deposit of £1 is required to open this account, which pays interest monthly. Both further additions and withdrawals are allowed, but withdrawals are subject to 90 days’ notice. This account can only be opened and managed online.

This week Secure Trust Bank offered the best rate in both the 60-day and 30-day notice account charts. 60 Day Notice Account offers a rate of 1.75%, while 30 Day Notice Account offers a rate of 1.55%. Both accounts require a minimum deposit of £1,000, pay interest quarterly and allow further additions. 60 Day Notice Account allows withdrawals, subject to 60 days’ notice, while the 30-day version is subject to 30 days’ notice on withdrawals. The accounts can only be opened online and then managed online and by phone. Four interest withdrawals are permitted per annum without penalty and three capital withdrawals are permitted per annum subject to the relevant notice being given.

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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