Derin Clark

Derin Clark

Online Reporter
Published: 24/05/2019

Research released this week revealed that the number of inflation-beating fixed rate bonds available has risen in the past 12 months, despite inflation increasing to 2.1% during April. The research carried out by Moneyfacts shows that there are currently 108 fixed rate bonds and seven fixed rate ISAs (based on a £10,000 deposit) available that beat inflation and of these 91 fixed rate bonds and three fixed rate ISAs pay more than 2.1%.

Fixed rate bonds savings rates

  • Bank of London and The Middle East, Premier Deposit Account (Anticipated Profit Rate) – 2.75% expected profit rate paid at £1,000
  • Masthaven Bank, 5 Year Fixed Term Bond – 2.49% paid at £500
  • OakNorth, Fixed Term Deposit – 2.24% paid at £1

The best rate in the fixed rate bonds chart this week came from Bank of London and The Middle East (BLME), which was offering an expected profit rate of 2.75% on its Premier Deposit Account (Anticipated Profit Rate) from a minimum deposit of £1,000.  This seven-year bond does not allow withdrawals or further additions and can only be opened online and then managed by post. In order to open this account, a BLME transfer account to hold funds pending investment is needed.

For those with just a £500 deposit, the best rate came from Masthaven Bank, which was paying 2.49% on its 5 Year Fixed Term Bond. This online-only account allows further additions for seven days from account opening via a nominated account, but does not permit withdrawals. There are also fixed-term bonds available for those with a minimum opening deposit of only £1. The best rate available was from OakNorth on the 60-month version of its Fixed Term Deposit which pays a rate of 2.24%. It should be noted that it does not allow further additions once opened, so savers should deposit as much as they can afford when they open the account. Withdrawals are also not permitted on this online-only. 

Easy access savings rates

  • Newbury Building Society, Existing Member Account – 1.75% paid at £50
  • Marcus by Goldman Sachs®, Online Savings Account – 1.50% paid at £1
  • Virgin Money, Double Take E-Saver Issue 10 – 1.50% paid at £1

The best easy access saving rate this week came from Newbury Building Society which paid 1.75% from a minimum opening deposit of £50 on its Existing Member Account. It should be noted that this account can only be opened by those who have been customers at Newbury Building Society for one year or more. This account allows further additions up to a maximum of £2,000 per tax year and withdrawals are also permitted.  It can be both opened and managed online, in branch and by post.

At a slightly lower rate of 1.50% from a deposit of just £1, Marcus by Goldman Sachs® offers a very competitive easy access savings account that does not have any opening restrictions apart from applicants needing a UK mobile number. This account does not require an opening minimum deposit and allows further additions and withdrawals. It must be opened online but can then also be managed by phone as well. Savers should note that the rate on this account also includes a 0.15% bonus for 12 months. Another account paying 1.50% on a minimum deposit of £1 is Virgin Money with its Double Take E-Saver Issue 10. This account can only be opened and managed online and allows further additions and withdrawals – however only two withdrawals can be made per calendar year, including account closure.

Notice account saving rates

  • Hampshire Trust Bank, 90 Day Notice (Issue 23) – 1.91% paid at £1,000
  • Paragon Bank, 120 Day Notice (Issue 10) – 1.80% paid at £500
  • OakNorth Bank, 120 Day Notice Deposit – 1.79% paid at £1

The best rate in the notice account saving chart this week came from Hampshire Trust Bank, which paid a variable rate of 1.91% on a minimum deposit of £1,000 on its 90 Day Notice (Issue 23). This account can be opened online or by post and then managed by both these channels as well as by phone. It allows further additions while withdrawals are permitted via a nominated bank account with 90 days’ notice.

Savers with an opening deposit of £500 can get a rate of 1.80%, which is available on the 120 Day Notice (Issue 10) account by Paragon Bank. and the online-only account allows further additions while withdrawals are permitted with 120 days’ notice. Those who just have an opening deposit of just £1 can still get a competitive rate of 1.79% from OakNorth on its 120 Day Notice Deposit. This account allows further additions while withdrawals are allowed with 120 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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