Derin Clark

Derin Clark

Online Reporter
Published: 31/05/2019

The best savings rates this week could be found in the fixed rate chart, where the top rate on offer was 2.75% AER fixed, but to get the best rates a minimum opening deposit of £1,000 was required. This was also the case in the notice savings chart this week, with the best rate on offer at 1.92% AER variable from an opening minimum deposit of £1,000. The best rate in the easy access chart was 1.75% AER variable, but this account was restricted to existing members of the Newbury Building Society only. However, there were three accounts in this chart offering 1.50% AER variable without opening restrictions.

Fixed rate bonds savings rates

  • Bank of London and The Middle East, Premier Deposit Account – 2.75% expected profit rate at £1,000
  • Gatehouse Bank, Fixed Term Deposit – 2.75% expected profit rate at £1,000
  • Al Rayan Bank, Fixed Term Deposit - 2.42% expected profit rate at £1,000

The top saving rates in the fixed rate bonds chart this week all required a minimum opening deposit of £1,000. The best rate on offer was from the Bank of London and The Middle East (BLME), which was paying an expected profit rate of 2.75% on its Premier Deposit Account. This seven-year bond can be opened online, but only managed via post. Interest is paid on anniversary, and withdrawals and early access are not allowed. You need to either already hold or open a BLME transfer account to open this product.

At the same expected profit rate of 2.75%, but with a shorter term of five years, was Gatehouse Bank, with its Fixed Term Deposit account. This five-year bond can only be opened and managed online and once opened does not allow further additions or withdrawals. For those looking for a shorter-term bond, the best rate in the two-year fixed rate chart came from Al Rayan Bank, which was offering an expected profit rate of 2.42% on its Fixed Term Deposit account. This 24-month bond can be opened and managed online, by post, phone, in branch and through its mobile app. It doesn’t allow further additions or withdrawals and it pays interest quarterly.

Those who don’t have £1,000 to deposit can still get competitive rates on an opening minimum deposit of £500. In the five-year chart the best rate for this deposit came from Masthaven Bank, which was paying 2.49% AER fixed on its 5 Year Fixed Term Bond. This bond can be opened and managed online only. It allows further additions for seven days from account opening via a nominated account, but withdrawals are not permitted. Over the shorter-term, the best rate for a £500 deposit came from Metro Bank which was offering 2.10% AER fixed on its 18-month Fixed Term Savings Account. Once open, the account does not allow further additions or withdrawals. It can be opened online or in branch, and then managed by phone as well.

Easy access savings rates

  • Marcus by Goldman Sachs®, Online Savings Account – 1.50% AER variable at £1
  • Virgin Money, Double Take E-Saver Issue 10 – 1.50% AER variable at £1
  • Sainsbury’s Bank, Defined Access Saver Issue 11 – 1.47% AER variable at £1,000

While Marcus by Goldman Sachs® and Virgin Money continued to dominate the easy access savings chart this week, the best rate on offer in fact came from Newbury Building Society. This account is restricted to existing members of one year or more only, so although worthy of a mention doesn’t feature in our top three accounts.

With no opening restrictions, apart from applicants needing a UK mobile number, Marcus by Goldman Sachs® was offering a highly competitive rate of 1.50% AER variable for £1, which includes 0.15% bonus for 12 months. This account pays interest monthly, and while it can only be opened online, it can then be managed by phone as well. Further additions and withdrawals are allowed.

Virgin Money was offering two accounts in the easy access savings chart this week, both of which were offering 1.50% AER variable on a deposit of £1. The Double Take E-Saver Issue 10 and Man Utd Double Take E-Saver Issue 5 can both be opened and managed online only. Both accounts allow further deposits and restrict withdrawals to two per calendar year including closure. There is also a version of both accounts that pays interest monthly.

Sainsbury’s Bank was offering a tiered rate of interest on their Defined Access Saver – Issue 11, with 0.75% AER variable paid from £1 and 1.47% AER variable paid from £1,000, before the rate reduces to 0.50% AER variable from £50,001.  This account can be opened and managed online and by phone and has no restrictions on withdrawals or further additions.

Notice account saving rates

  • Secure Trust Bank, 90 Day Notice Account – 1.92% at £1,000
  • Paragon Bank, 120 Day Notice (Issue 10) – 1.80% at £500
  • Darlington Building Society, Member Exclusive 45 Day Notice Account – 1.40% at £1

Secure Trust Bank offered the top-paying rate across all notice periods in the notice accounts saving charts this week. The best rate on offer was 1.92% on its 90 Day Notice Account that required a minimum opening deposit of £1,000. Its 60 Day and 30 Day Notice Accounts also required an opening deposit of £1,000 and were paying 1.65% and 1.41% respectively. All three accounts, which can be opened online and then managed by phone as well, pay interest quarterly and allow further additions and withdrawals once open. Capital withdrawals are limited in number and subject to each accounts’ notice periods, while four interest withdrawals are permitted per year without penalty.

For an opening minimum deposit of £500, Paragon Bank was paying 1.80% AER variable on its 120-Day Notice (Issue 10) account. This account can only be opened and managed online, and once open allows further additions. Withdrawals are also allowed subject to 120 days’ notice. There is also a version of this account that pays interest monthly.

Darlington Building Society was offering 1.40% AER variable on its Member Exclusive 45-Day Notice Account that requires a minimum opening deposit of £1. This account is restricted to existing members of the building society who have been members for a minimum of three consecutive years. It can be opened and managed in branch and by post, and allows further additions. Withdrawals are permitted subject to 45 days’ notice.

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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