The Best Savings Rates This Week 21.08.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 21/08/2020

With inflation rising to 1.0% in July , savers will be disappointed to find that the number of inflation-beating savings accounts has fallen significantly. Saying this, all the top rates in the fixed rate bond, easy access and notice account charts are all able to match or beat inflation this week.

The best fixed rate bonds savings rates

Provider Account Term Rate AER
Bank of London and The Middle East Premier Deposit Account Seven years 1.50% (expected profit rate)

Bank of London and The Middle East
Paragon Bank

UBL UK

Premier Deposit Account
5 Year Fixed Rate Savings Account
5 Year Fixed Term Deposit

Five years

Five years

Five years

1.40% (expected profit rate)
1.40%

1.40%

Paragon Bank 3 Year Fixed Rate Savings Account Three years 1.35%
Charter Savings Bank Fixed Rate Bond
Fixed Rate Postal Bond
Two years
Two years
1.31%
1.31%
Charter Savings Bank Fixed Rate Bond
Fixed Rate Postal Bond
One year
One year
1.22%
1.22%

 

This week, Bank of London and The Middle East (BLME) remained at the top of the fixed rate bond chart, with the seven-year version of its Premier Deposit Account paying an expected profit rate of 1.50% gross on anniversary. This account requires a £1,000 minimum deposit to open. As well as this, to open this account, a BLME transfer account to hold funds pending investments is needed. It can be opened online and then managed by post. BLME also had a top-paying five year bond this week, with the five-year version of its Premier Deposit Account paying an expected profit rate of 1.40% gross on anniversary. This account has the same terms and conditions as the seven-year option.

Also paying the top rate in the five year fixed rate bond chart this week was Paragon Bank and UBL UK. Paragon Bank pays 1.40% gross on anniversary on its 5 Year Fixed Rate Savings Account. This account requires a £1,000 minimum deposit to open. It can be both opened and managed online and by post. There is also a version of this account that pays interest monthly at a gross rate of 1.39%. UBL UK’s 5 Year Fixed Term Deposit pays 1.44% gross on maturity, 1.40% gross on anniversary, or 1.39% gross monthly. All options require a £2,000 minimum deposit to open. They can be both opened and managed in branch and by post.

The top rate in the three year fixed rate bond chart came from Paragon Bank, which pays 1.35% gross on anniversary. This account requires a £1,000 minimum deposit to open. It can be opened and then managed online and by post. There is also a version of this account that pays interest monthly at a gross rate of 1.34%.

Charter Savings Bank had the best two and one year fixed bond rates this week. In the two year chart, it pays 1.31% gross on anniversary on its Fixed Rate Bond and Fixed Rate Postal Bond. Meanwhile, in the one year fixed rate bond chart, it pays 1.22% gross on anniversary on its Fixed Rate Bond and Fixed Rate Postal Bond. All these accounts require a £5,000 minimum deposit to open. Both versions of the Fixed Rate Bond can only be opened and managed online. The Fixed Rate Postal Bond options can be opened online or by post but only managed by post. There are versions of all these accounts that pay interest monthly at a gross rate of 1.30% on the two-year options and 1.21% on the one-year options.

Fixed rate bonds

All the rates available can be found on our fixed rate bonds chart.

The best easy access savings rates

Provider Account Notice Rate AER
National Savings & Investments Income Bonds None 1.16%
ICICI Bank UK SuperSaver Savings Account None 1.00%
National Savings & Investments Direct Saver None 1.00%

 

National Savings & Investments (NS&I) continued to offer the best easy access savings rate this week, with its Income Bonds paying 1.15% gross monthly. To open this account, a minimum deposit of £500 is needed. It allows unlimited further additions and withdrawals can be made at any time but must be made via a nominated account. Savers should be aware that all transactions must be from a minimum of £500. This account is 100% backed by HM Treasury and can be both opened and managed online, by post and by phone.

Both ICICI Bank UK and NS&I continued to offer the second-best easy access savings rate this week. ICICI Bank UK pays 1.00% gross monthly on its Super Saver Savings Account, which requires a £1 minimum deposit to open. It is only available to new and existing Home Vantage Current Account customers. This account allows unlimited further additions and withdrawals can be made at any time, but all transactions 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, which requires a £1 minimum deposit to open. This account allows unlimited further additions. Withdrawals can be made at any time but must be made via a nominated account. It is 100% back by HM Treasury. This account can be both opened and managed online and by phone.

Easy access accounts

All the rates available can be found on our easy access accounts chart.

The best notice accounts

Provider Account Notice Rate AER
Bank of London and The Middle East 90 Day Notice Account (Issue 3) 90 Day 1.10% (expected profit rate)
Allica Bank 95-Day Notice Personal Savings Account (Issue 1) 95 Day 1.10%

 

Both Bank of London and The Middle East (BLME) and Allica Bank had the best rate in the notice account chart this week. BLME pays an expected profit rate of 1.10% gross quarterly on its 90 Day Notice Account (Issue 3). This account needs a £10,000 minimum deposit to open. It allows unlimited further additions. Withdrawals can be made subject to 90 days’ notice. This account must be opened and managed online.

Allica Bank pays this rate on its 95-Day Notice Personal Savings Account (Issue 1). Interest is paid on anniversary. This account requires a £1,000 minimum deposit to open. Further additions are allowed. Withdrawals can be made subject to 95 days’ notice. This account can only be opened online and then must be managed by phone. There is also a version of this account that pays interest monthly at 1.09% gross.

Notice accounts

All the rates available can be found on our notice accounts chart.

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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