The best savings rates this week 29.05.20 | moneyfacts.co.uk

nigel woollsey

Nigel Woollsey

Online Writer
Published: 29/05/2020

There’s been quite a bit of change in the savings charts since our last round up a week ago. Several products and providers that were featuring prominently have dropped out of the tables and overall interest rates are noticeably lower than those of last week too.

Although inflation currently remains at 0.8% savers may not be able to rely on finding inflation-beating rates available in the charts forever. While rates as high as 1.90% AER continue to be available in the fixed rate bond charts, savers looking to secure the best rates are urged to act quickly as it is likely that savings rates will continue to fall over the next few months.

Savers should be aware that although we have included accounts that can be opened and managed in branch, consumers are advised to check with the bank or building society to ensure this service is still available, as many are only providing essential banking services in branch at the moment due to the Government’s restrictions on movement.

The best fixed rate bonds savings rates

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

Seven years

1.90% (expected profit rate)

RCI Bank UK

Fixed Term Savings Account

Five years

1.80%

Bank of London and The Middle East

Premier Deposit Account

Three years

1.65% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Two years

1.50% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

One year

1.35% (expected profit rate)

Bank of London and The Middle East (BLME) dominates the fixed rate bond charts – occupying four out of the five top entries.

The seven-year version of its Premier Deposit Account pays an expected profit rate of 1.90% gross on anniversary. To open this account, a minimum deposit of £1,000 is needed, as well as a BLME transfer account to hold funds pending investment. It must be opened online and can only be managed by post.

RCI Bank UK’s five-year Fixed Term Savings Account is the only non-BLME entry in this chart, taking second place by offering an interest rate of 1.80% for a minimum deposit of £1,000 paid on the anniversary of opening. For those looking for a regular income there is a monthly version that pays a slightly reduced rate of 1.79% gross. This account must be opened and managed online and while further additions are permitted for 14 days from account opening withdrawals are not.

BLME’s three-year Premier Deposit Account pays an expected profit rate of 1.65% gross for a minimum deposit of £1,000 on the anniversary of opening. As with the other BLME accounts, it must be opened online before being managed by post. In addition, it requires a BLME transfer account to hold funds pending investment.

BLME also offers the best expected profit rate of 1.50% in the two year fixed rate bond chart this week with its Premier Deposit Account. This account requires a minimum deposit of £1,000 to open, with the expected profit paid on the anniversary of opening. In addition to this, it requires a BLME transfer account to hold funds pending investment. This account can only be opened online and then only managed by post.

Finally, BLME rounds off the charts with its one-year version of the Premier Deposit Account. This pays an expected profit rate of 1.35% gross on the anniversary of opening. Again, a BLME transfer account is required to hold funds pending investment. Opening is online only with management by post after this.

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%

Family Building Society

Market Tracker Saver (1)

Instant

1.13%

Teachers Building Society

Teachers for Teachers (Issue 1)

None

1.10%

Once again topping the easy access savings chart this week was National Savings & Investment, which pays 1.15% gross monthly on its Income Bonds. This account requires a minimum opening deposit of £500. It allows unlimited further additions. Withdrawals can be made at any time via a nominated account. This account is 100% backed by HM Treasury. It can be both opened and managed online, by post and by phone.

As it did last week Family Building Society offers the second-best easy access rate, with its Market Tracker Saver (1) paying 1.13% gross yearly. A minimum deposit of £500 is needed to open this account, which allows unlimited further additions. Withdrawals are restricted to up to 20 withdrawals per calendar year via a nominated account. It can be opened online, in branch or by post and then managed online, in branch, by post and by phone.

There is no change to third place either, with Teachers Building Society, paying 1.10% gross yearly on its Teachers for Teachers (Issue 1). This account is only available to teachers, including retired teachers, and other education professionals. It requires a £5,000 minimum deposit to open. Unlimited further additions are allowed. Withdrawals are restricted to up to three withdrawals per calendar year, if four or more withdrawals are made an Extra Ordinary Account rate is paid. This account can be opened online or by post and then managed online and by phone.

Easy access accounts

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

The best notice account rates

Provider

Account

Notice

Rate

ICICI Bank UK

Raisin UK - 45 Day Notice Account

 HiSAVE Notice Savings Account

45 days

 

45 days

1.25%

 

1.25%

Chorley Building Society

 Tipton & Coseley Building Society 

30 Day Notice Account

 30 Day Community Notice Saver

30 Day Notice Midlands Air Ambulance Saver 

30 days

 

30 days

 

30 days 

1.10%

 

1.10%

 

1.10%

Remaining at the top of the notice account chart this week was ICICI Bank UK. Its Raisin UK – 45 Day Notice Account pays 1.24% gross monthly and requires a minimum deposit of £1,000 to open. Once opened, this account does not allow any further additions. Withdrawals are only permitted of the full account balance subject to 45 days’ notice and account closure. It must be opened online but can then be managed online, by post and by phone. HiSAVE Notice Savings Account also pays 1.24% gross monthly. To open this account, a minimum deposit of just £1 is needed and it is only available to new and existing HomeVantage Current Account customers. It allows unlimited further additions. Withdrawals are permitted subject to 45 days’ notice but must be made via a linked ICICI Bank current account. It can be both opened and managed online, in branch and by post.

Three accounts pay the top rate of 1.10% in the up to 30 days’ notice chart. Chorley Building Society pays 1.10% gross yearly on its 30 Day Notice Account. A minimum deposit of just £1 is needed to open this account, which allows unlimited further additions. Withdrawals can be made subject to 30 days’ notice. It can be both opened and managed in branch and by post.

Tipton & Coseley Building Society pays 1.10% gross yearly on both its 30 Day Community Notice Saver and its 30 Day Notice Midlands Air Ambulance Saver. Both accounts require a minimum deposit of £1,000 to open. They allow unlimited further additions. Withdrawals are restricted to three per calendar year including closure and are subject to 30 days’ notice. These accounts can be both opened and managed in branch and by post.

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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