The best savings rates this week 24.07.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 24/07/2020

Here are the best savings rates available today across fixed rate bonds, easy access accounts and 90-day notice accounts.

The best fixed rate bonds savings rates

Here are the best rates for fixed rate bonds this week:

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

Seven years

1.70% (expected profit rate)

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

Four years

1.45% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Three years

1.40% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Two years

1.35% (expected profit rate)

QIB (UK)

Raisin UK – 1 Year Fixed Term Deposit

One year

1.05% (expected profit rate)

As reported recently, the Sharia banks continue to dominate the savings market, especially Bank of London and the Middle East (BLME), that has regularly sat at the top of the rate tables during 2020. This week however, QIB (UK) has the top rate for a one-year bond, offering an expected profit rate of 1.05% AER. The account must be opened online through the Raisin UK savings platform. The minimum deposit is £1,000 and interest is paid on maturity.
QIB (UK) has also launched a competitive nine-month bond with an expected profit rate of 0.90% – again this is only available online through the Raisin savings platform and savers need at least £1,000 to open the account.
All the other best rates for fixed rate bonds remain with BLME. Those savers wanting an 18-month fixed rate bond will now find they can choose between two accounts offering an expected profit rate of 1.15% AER: BLME’s Premier Deposit Account or QIB (UK)’s Raisin UK – 18 Month Fixed Term Deposit account.
Savers choosing a fixed rate bond must make sure they can commit their funds for the full term as early withdrawals are usually not permitted.

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%

Dudley Building Society

Limited Access Bonus

Instant

0.80%

National Savings & Investments (NS&I) is at the top of the easy access savings charts again this week, following the increase of its funding target from £6 billion to £35 billion. All funds saved with NS&I are 100% Government-backed. Savers can choose either its Income Bonds, with a market-leading rate of 1.16% AER and receive interest monthly, which must be paid into a different account, or choose the Direct Saver account at 1.00% AER and receive interest annually. The Direct Saver account may only be opened online or by phone, while the higher rate on Income Bonds can also be opened by post.
ICICI Bank UK continues to offer its 1.00% AER easy access account for those who are happy to open or already hold a HomeVantage current account with the bank.
Savers that don’t want to open a current account will find the next best rate available is 0.80% AER, with NS&I, Buckinghamshire Building Society, Dudley Building Society and Yorkshire Building Society all advertising accounts at this rate. This week we are featuring Dudley Building Society and its Limited Access Bonus account. This account allows savers to make withdrawals but if they make more than three the interest rates drops to 0.10% AER. This account can be opened by post or in one of the five branches the Society has in the west midlands.

Easy access accounts

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

The best 90-day notice account savings rates

Provider

Account

Notice

Rate AER

Ecology Building Society

90 Day Notice

90 Days

1.45%

Bank of London and The Middle East

90 Day Notice Account (Issue 3)

90 Days

1.10% (expected profit rate)

Harpenden Building Society

90 Days’ Notice

90 Days

1.00%

The best notice accounts this week focuses on 90-day notice accounts.
Ecology Building Society’s 90 Day Notice account pays a tiered interest rate depending on the balance. Savers will need at least £25,000 to earn the interest rate of 1.45% AER. Those with only the minimum opening balance of £500 will earn 1.00% AER. The 90 day notice chart includes full details of all the interest bands under the View Further Details button. Interest may be paid to another account or compounded yearly.
The 90 Day Notice Account from BLME has an expected profit rate of 1.10% and starts with a minimum balance of £10,000. Profit must be paid into another account and is paid quarterly. The account must be opened online.
Harpenden Building Society is paying 1.00% on balances of £5,000 or more held in its 90 Days’ Notice account. Interest is paid yearly and can be paid into a different account or compounded.
With all notice accounts, savers need to give the bank or building society the right level of notice before they can make a penalty-free withdrawal. Savers can read more in our guide to managing savings accounts.

90 Day notice

Alternative sources of income

Savers looking for better returns may also want to consider structured deposits. These are capital protected and their return is based on the performance of the FTSE 100.

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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