Derin Clark

Derin Clark

Online Reporter
Published: 20/09/2019

Savers got some good news this week, with the CPI (Consumer Price Index) figures showing that inflation during August had fallen to 1.7%, meaning that more savings accounts are now offering rates that match or beat inflation. In fact, research by Moneyfacts.co.uk published this week, found that 176 fixed rate bonds (based on a £10,000 deposit) could match or beat inflation. However, for savers wanting to get an inflation-beating rate, they still have to lock their money away, as currently no easy access savings accounts are able to match or beat inflation.

The best fixed rate bonds savings rates

Provider Account Term Rate AER
Gatehouse Bank Fixed Term Deposit Five year bond 2.45% (expected profit rate)
Al Rayan Bank Fixed Term Deposit Three year bond 2.42% (expected profit rate)
Al Rayan Bank Fixed Term Deposit Two year bond 2.32% (expected profit rate)
Al Rayan Bank Fixed Term Deposit 18 month bond 2.22% (expected profit rate)

This week has seen several providers withdraw or reduce rates on a number of bonds, most notably Bank of London and The Middle East (BLME) reduced rates on a number of its fixed rate bonds, which has resulted in new rates topping many terms within the chart. Gatehouse Bank topped the chart overall offering an expected profit rate of 2.45% on its Fixed Term Deposit, a five-year bond that requires a £1,000 opening deposit. This is an online-only account that does not allow any funds to be withdrawn during the five-year term.

The reduction in rates by BLME lead to Al Rayan Bank topping the three, two and one-year charts with its Fixed Term Deposit accounts. The three-year version pays an expected profit rate of 2.42%, the two-year version pays an expected profit rate of 2.32% and the 18-month version pays an expected profit rate of 2.22%. All these accounts require an opening minimum deposit of £1,000 and do not allow withdrawals. They can be both opened and managed online, in branch, by post, by phone and via its mobile app.

The best easy access savings rates

Provider Account Term Rate AER
Al Rayan Bank Everyday Saver Instant 1.61% (expected profit rate)
Cynergy Bank Online Easy Access Account – Issue 25 None 1.45% (includes a 0.70% bonus for 12 months)
Marcus by Goldman Sachs® Online Savings Account None 1.45% (includes a 0.10% bonus for 12 months)

Savers will be pleased to see that Al Rayan Bank is still offering its highly competitive easy access savings rate of 1.61% (expected profit rate) on its Everyday Saver. This account requires an opening deposit of £500 and allows unlimited further additions and withdrawals. It can be both opened and managed online, in branch, by post, by phone and via its mobile app.

Cynergy Bank and Marcus by Goldman Sachs® both continue to offer the second-best rate in the chart of 1.45%. Cynergy Bank offers this rate, which includes a 0.70% bonus for 12 months, on its Online Easy Access Account – Issue 25. This online-only account requires a deposit of £1 to open and allows further additions and withdrawals. Marcus by Goldman Sachs® offers 1.45%, which includes a 0.10% bonus for 12 months, on its Online Savings Account. The account doesn’t require a deposit to open, but a UK mobile number is required. It also allows further additions and withdrawals, and must be opened online but can then be managed by phone as well.

The best notice account rates

Provider Account Notice Rate AER
PCF Bank 180 Day Notice Deposit Issue 1 180 days 1.85%
Bank of London and The Middle East 90 Day Notice Account (Issue 1) 90 days 1.71% (expected profit rate)
Shawbrook Bank 45 Day Notice Personal Account Issue 2 45 days 1.51%
Aldermore 30 Day Notice Issue 7 30 days 1.30%

The most significant change that took place in the notice charts this week was Charter Savings Bank withdrawing its 95 Day Notice – Issue 25 account yesterday. While this was a highly competitive account, its withdrawal has not impacted the top rates being offered in the notice charts this week. PCF Bank continued to offer the top rate overall with its 180 Day Notice Deposit Issue 1 paying 1.85%. This account requires an opening deposit of £1,000 and allows further additions, while withdrawals are subject to a 180 days’ notice. The account can be opened online or by post and then managed by both these channels, as well as by phone.

BLME tops the Up to 90 Day chart with its 90 Day Notice Account (Issue 1) offering an expected profit rate of 1.71%. This online-only account requires a substantial deposit of £10,000 and allows further additions, while withdrawals are subject to 90 days’ notice.

Remaining at the top of the Up to 60 Days chart this week is Shawbrook Bank’s 45 Day Notice Personal Account Issue 2 paying 1.51%. This account requires a £1,000 deposit to open and allows further additions, with withdrawals also allowed but subject to 45 days’ notice. This account must be opened online but can then be managed by phone as well.

Aldermore once again topped the Up to 30 Days chart with its 30 Day Notice Issue 7 paying 1.30% on a £1,000 deposit. This account allows further additions and permits withdrawals subject to 30 days’ notice. It can only be opened and managed online.

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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