There are new entries on the best buy tables across the easy access, fixed and notice sectors.
Despite high street banks starting to offer higher rates than previously, many top rates in the savings market continue to be offered by challenger banks, rather than high-street names, according to Moneyfacts.
Easy access savings accounts
The Instant Access Savings Account from Metro Bank holds onto the top position in Moneyfacts’ easy access chart for another consecutive week, continuing to pay 5.22% AER monthly.
The rate includes an introductory bonus of 3.46% for the first 12 months – but this only applies if £500 is deposited into the account within 28 days of the account opening. Otherwise, you’ll receive the lower, underlying rate. The account can be applied for online or in branch, and can then be managed online, in branch, via telephone or mobile app.
When it comes to accessing your cash, all withdrawals for more than £1,000 require one banking days’ notice.
Ulster Bank also retains its second place position in the Moneyfacts charts. Its Loyalty Saver continues to pay 5.20% AER yearly on deposits of more than £5,000, with 2.25% AER paid on balances below this. Once opened online, over the phone or by mobile app, with no minimum deposit required, your account can then also be managed at a local branch if you live in Northern Ireland.
The Double Access Savings Account – Issue 4 from Paragon Bank offers the third best easy access rate, at 5.16% AER. This account pays interest either monthly or on anniversary after opening online with a minimum deposit of £1,000.
If you exceed two withdrawals per year, a lower rate of 1.50% AER is applied.
Fixed rate bonds
Metro Bank’s one-year Fixed Term Savings Account continues to pay 5.80% AER either monthly or on anniversary. It can be opened online or in branch with a minimum initial deposit of £500.
To use the account, you’ll need to have another account with Metro Bank for transactional purposes, so an Instant Access account will automatically be opened on your behalf if you don’t already hold a Metro account.
The Union Bank of India (UK) Ltd takes the top position for two-year bonds, paying 5.7%. The account can be opened and managed in branch or by post with a minimum deposit of £1,000.
In Moneyfacts’ three-year chart, Hanley Economic BS’s Fixed Rate Bond – Issue 228 and the Bank of London and The Middle East (BLME) both pay 5.35% AER.
The Hanley account pays interest on maturity and can be opened in branch or by post with a minimum deposit of £1,000. Then solely manageable in branch, further additions are permitted either for 14 days from opening or while the issue remains open – whichever period is shorter.
BLME’s Premier Deposit Account pays the same rate and also requires a £1,000 deposit. In order to open the account online, you must already have or be prepared to open a BLME transfer account to hold funds pending investment. Once opened, this Shari’ah compliant account, which pays an expected profit rate rather than interest, can be managed by post, pays profit on anniversary, and prohibits both further additions and earlier access.
If you’re looking for a longer-term bond, BLME and Union Bank of India (UK) Ltd both pay 5% on their five-year bonds.
FirstSave is in the top spot on Moneyfacts’ 30 days’ notice chart, with its FirstSave 30 Day Notice Account (Oct23) paying 5% AER.
This account must be opened online but can then also be managed via post or by phone. Interest will be received on anniversary, with a minimum deposit of £100, or it can be paid out monthly following a larger initial investment of £5,000.
A notice period of 30 days is required before making withdrawals, while earlier access is permitted subject to a 30-day loss of interest penalty.
QIB (UK) leads Moneyfacts’ 60-day notice chart this week after relaunching its Raisin UK – 60 Day Notice Account, which pays 5.35% AER monthly.
The account can be opened and managed online or by mobile app via the third-party savings platform, Raisin UK. It requires a minimum deposit of £1,000. Withdrawal of the full account balance can occur following 60 days’ notice and account closure, but earlier access, partial withdrawals and further additions are not permitted.
To access a higher rate, you could consider the 90 Day Notice from Beverley Building Society which pays 5.5% AER on a yearly basis. This can be opened and managed in branch or by post with a minimum deposit of £5,000.
While withdrawals are allowed, you cannot gain earlier access to your funds without providing 90 days’ notice. Alternatively, this account can pay interest monthly but at the slightly lower rate of 5.45% AER.
For a digital alternative, the 90 Day Notice Account (Issue 2) from Vanquis Bank also pays 5.50% AER either monthly or on anniversary. This online-only account requires a minimum deposit of £1,000 to open. Further additions to this amount are permitted at any time, but earlier access is prohibited.