The best savings rates this week 20.11.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 20/11/2020

Savers looking for the best savings accounts this week will find rates have held for easy access accounts and the longer-term fixed rate bonds. However, there has been a reduction in the best rate available for mid and shorter-term bonds following rate reductions from Al Rayan Bank.

The best fixed rate bond savings rates

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

Five years

1.50% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Three years

1.30% (expected profit rate

Bank of London and The Middle East

Premier Deposit Account

Two years

1.20% (expected profit rate)

Al Rayan Bank

Fixed Term Deposit

12 months

1.08% (expected profit rate)

Note: This chart only shows those banks that have protection under the UK Financial Services Compensation Scheme (FSCS).

This week, savers will find the best rates for fixed rate bonds from the Sharia’a banking sector. Rates at seven and five-year fixed terms have held at 1.50% expected profit rate gross for both terms from the Bank of London and The Middle East (BLME). BLME also offers the best rates for three and two-year fixed rate bonds at 1.30% and 1.20% expected profit rates gross respectively. These bonds are called the Premier Deposit Account and to open the account savers will need to have a minimum £1,000. The account can only be opened online and then managed by post. Savers opening a Premier Deposit Account will also be required to open a BLME transfer account at the same to hold funds pending investment into the bond. The expected profit rate is paid on anniversary of the account opening.

Al Rayan Bank has the best rate for a one-year fixed rate bond, with an expected profit rate of 1.08% gross. Savers will need a £5,000 deposit to open this account, and they can do this online, in branch, over the phone or via mobile app. The account may then be managed online, in branch, by phone and via mobile app. The expected profit rate is paid quarterly.

Savers looking for alternative savings accounts with FSCS protection can also find best buy rates available from:

Five-year fixed rate bond – JN Bank paying 1.30% gross on its five-year Fixed Term Savings Account. This account can only be opened and operated online and requires a minimum deposit of £1,000. Interest is paid on anniversary of the account. United Trust Bank also offers 1.30% gross. The UTB 5 Year Bond may be opened with a £5,000 deposit and can be opened and managed online, with the additional options to manage the account by post and phone.

Three-year fixed rate bond JN Bank paying 1.20% gross on its three-year Fixed Term Savings Account. The account terms are the same as its five-year alternative. Al Rayan Bank also offers its Fixed Term Deposit account for a three-year fixed term with an expected profit rate of 1.20% gross. Interest is paid quarterly, and the account can be both opened and managed online, in branch, by phone and via mobile app. The minimum investment is £5,000.

Two-year fixed rate bond – Al Rayan offers an expected profit rate of 1.15% gross for its Fixed Term Deposit account over a two-year fixed term. This has the same terms as its three-year bond.

One-year fixed rate bond – BLME offers an expected profit rate of 1.00% gross for its Premier Deposit with a one-year fixed term. This account has the same terms as other BLME fixed accounts listed above. Savers must be aware that fixed rate bonds may restrict access to funds during the term of the account. Savers should check these terms with their bank or building society.

Compare the best fixed rate bonds

The best easy access savings rates

Provider

Account

Notice

Rate AER

Gatehouse Bank

Easy Access Account

None

0.75% expected profit rate

ICICI Bank UK

SuperSaver Savings Account

None

0.75%

SAGA

SAGA Easy Access Savings Account

None

0.70% (includes 0.15% bonus for 12 months)

Al Rayan Bank

Everyday Saver (Issue 2)

None

0.70% expected profit rate

Paragon Bank

Triple Access Account (Issue 2)

None

0.65%

Note: Chart shows the best easy access accounts that include the option to be opened online and not via apps.

The easy access savings account chart this week remains the same as last week. Gatehouse Bank and ICICI Bank UK both have the best easy access rate of 0.75% gross (expected profit rate for Gatehouse Bank). The Easy Access Account from Gatehouse Bank can only be opened and operated online and profit is paid on anniversary. Savers will need a minimum deposit of £1,000 and there are no restrictions on withdrawals. The SuperSaver Savings Account from ICICI Bank UK has no minimum balance requirement. The account can be opened online, in branch or by phone, and can also be operated by the same methods plus via its mobile app. Interest is paid monthly and savers also need to have or open an ICICI Bank HomeVantage current account, as this is used for any withdrawals from the account. There are no withdrawal restrictions. SAGA and Al Rayan Bank offer the next-best easy access rate to savers.

The Saga Easy Access Account has a rate of 0.70% gross monthly, which includes a 0.15% bonus for 12 months. Savers can open the account with a £1 deposit, and it has no withdrawal restrictions. The account can only be opened online but it can then be managed online and by phone. The account is operated by Goldman Sachs International Bank. The Everyday Saver (Issue 2) from Al Rayan Bank pays an expected profit rate of 0.70% gross monthly. This account has a £500 minimum deposit to open and it has no withdrawal restrictions. The account can be both opened and managed online, in branch, by post, by phone and via mobile app.

Paragon Bank offers savers a further alternative with the third-best rate of any easy access account, with its new Triple Access Account (Issue 2). This account has a rate of 0.65% gross and interest can be paid on anniversary of account opening or monthly. The minimum deposit is £1. This account will allow three withdrawals in a 12-month period and still pay the interest rate of 0.65% gross. If more withdrawals are made in the same period, then the interest rate is reduced to 0.25%. The account can only be opened and operated online.

Compare the best easy access savings accounts

The best notice account rates

Provider

Account

Notice

Rate AER

Aldermore

30 Day Notice Account Issue 10

30 days

0.55%

Al Rayan Bank

60 Day Notice Account

60 days

0.90% (expected profit rate)

UBL UK

90 Day Notice

90 days

1.00%*

*UBL UK also offers a 90 Day Ameen Islamic Notice at 1.00% expected profit rate. Note: this chart does not include accounts that restrict access to existing members only.

Savers have seen a reduction some of the best notice account rates this week. The top 30-day notice account is now from Aldermore, with its 30-Day Notice Account Issue 10 offering a rate of 0.55% gross. Interest can be paid on anniversary or monthly. The account can be opened and operated online. The minimum balance is £1,000.

The best 60-day notice account this week is again from Al Rayan Bank at 0.90% expected profit rate paid monthly. This account may be both opened and operated online, in branch, by post, by phone and via mobile app. It has a minimum balance of £250.

The best rate for a 90-day notice account is from UBL UK, with its 90 Day Notice Account paying 1.00% gross. Interest is paid half-yearly and the account has a minimum deposit of £1. The account may be both opened and operated in branch and by post. Savers that require earlier access will incur a 90-day interest penalty. Savers choosing a notice account must be aware that access to their funds is subject to serving their bank or building society the relevant notice period.

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.

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