The best savings rates this week 4.12.20 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/12/2020

The number of savings accounts with reduced rates or being closed to new savers has been numerous this week. The demand for savings accounts has continued this week most likely as a result of the rate reduction made by NS&I in late November. Bank and building societies have responded with rate reductions or even product withdrawals.

The best fixed rate bond savings rates

Provider

Account

Term

Rate AER

Close Brothers Savings

Fixed Rate Bond

Five years

1.30%

SmartSave

3 Year Fixed Rate Saver

Three years

 

1.14%

 

Arbuthnot Direct

Fixed Saver 2 Year

2 Year Fixed Term Deposit Issue 2

Two years

 

1.00%

Habib Bank Zurich plc

HBZ Sirat eDeposit (Islamic Fixed Term Account)

12 months

0.85% (expected profit rate)

Note: accounts not covered by the Financial Services Compensations Scheme have not been included

This week the long-standing reign of Bank of London and The Middle East (BLME) in the top of the savings charts ended as they reduced rates. This means Close Brothers Savings now has the best rate for a five-year fixed rate bond with UK Financial Services Compensation Scheme (FSCS) protection. Its Fixed Rate Bond has a rate of 1.30% gross paid yearly. The minimum deposit to open this account is £10,000 and it can only be opened online. Once open savers can operate the account online and by phone.

The best three-year fixed rate bond is from SmartSave this week. Its 3 Year fixed Rate Saver has a rate of 1.14% gross paid on anniversary of the account opening. This account can only be opened and operated online. The minimum opening deposit is £10,000.


Arbuthnot Direct offers the best two-year fixed rate bond this week. Its 2 Year Fixed Term Deposit Issue 2 account has a rate of 1.00% and interest is paid on anniversary of the account opening. The minimum deposit is £10,000 and it can only be opened and operated online.


Following product changes from Al Rayan Bank and Tandem Bank this week Habib Bank Zurich plc now offers the most competitive rate for a one-year fixed rate bond. Its 12-month HBZ Sirat eDeposit (Islamic Fixed Term Account) has an expected profit rate of 0.85% gross on maturity and there is a minimum balance of £5,000 to open the account. It must be opened online but can then be managed by post.
Fixed rate bonds do not allow access to your money until the fixed period ends. Savers should check if early withdrawal or closure applies with their bank or building society.

Compare the best fixed rate bonds

Check your savings account is protected after the UK leaves the EU

AgriBank is a Maltese bank and has the best five-year fixed rate bond at 1.70% gross. Savers need to be aware that after the 31 December 2020 any funds held with AgriBank will not be protected under either the UK’s Financial Services Compensation Scheme (FSCS) or by the European Union.


Ikano Bank is a Swedish Bank and also offers a competitive five-year fixed rate bond at 1.26% gross. It is believed that Ikano Bank is in the process to get a UK banking licence. If this remains unconfirmed on 1 January 2021 then savers funds may not be protected.


Read more in our guide to depositor protection schemes.

The best easy access savings rates

Provider

Account

Maximum number of withdrawals allowed

Rate AER

ICICI Bank UK

SuperSaver Savings Account

Unlimited

0.75%

Aldermore

Double Access Account Issue 1

Reduced rate paid if more than two withdrawals made

0.60%

UBL UK

Online Easy Access

One free withdrawal per month, additional withdrawals are charged at £1 each

0.60%

Investec Bank plc

Online Flexi Saver

Unlimited

0.55%

JN Bank

Easy Access Savings Account

Unlimited

0.55%

Note: accounts with eligibility exclusions have not been included.


This week ICICI Bank continues to offer the best return on an easy access account at 0.75% gross. Its SuperSaver Savings Account can be opened with £1 online, in branch or by phone. The account can be managed online, in branch by post and via mobile app. All withdrawals from this account must be made into an ICICI Bank HomeVantage Current Account. Interest is paid monthly.


Aldermore and UBL UK have the next best easy access rate. The Double Access Account Issue 1 from Aldermore has a rate of 0.60% gross and interest can be paid either on anniversary of the account opening or monthly. The account can only be opened and managed online, and the minimum deposit is £1,000. The Online Easy Access account from UBL UK has a rate of 0.60% gross and can be opened with £500 in branch or by post. It can then only be managed online. Interest is paid yearly.


The Online Flexi Saver from Investec Bank plc and the Easy Access Savings Account from JN Bank offer a rate of 0.55% gross monthly. Both accounts have no restrictions on their withdrawals making them both highly flexible choices for savers that need convenient access to their cash. These accounts may be opened and operated online. The minimum deposit for the easy access account from Investec Bank plc is £5,000, while JN Bank is only £1. However, JN Bank pays a rate of 0.10% until £1,000 is held in the account and 0.55% is paid.

Compare the best easy access savings accounts

The best notice account rates

Provider

Account

Notice

Rate AER

UBL UK

90 Day Ameen Islamic Notice
 90 Day Notice

90 days

 90 days

1.00% (expected profit rate)
 1.00%

UBL UK

35 Day Notice

35 days

1.00%

There is no change in the best rates available for a notice account this week. UBL UK continue to offer three table topping accounts; the 90 Day Ameen Islamic Notice (expected profit rate), the 90 Day Notice and 35 Day Notice all at 1.00% gross with interest paid half-yearly. These accounts can be opened with a £1 deposit in branch or by post. They can then be operated in the same way.

Compare the best notice accounts

Disclaimer

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