When the Bank of England’s Monetary Policy Committee (MPC) voted to drop the base rate from 5.25% to 5% in August, the best interest rates on savings products were widely expected to nosedive.
However, after the MPC decided to keep the rate at 5% in September, the top rates during October did not drop as much as first feared. Some have even risen for November.
But with a 0.25% cut expected in tomorrow’s (7 November) base rate announcement coupled with a potential impact from the newly elected president of the US on the way, it is key to lock in your savings with as lucrative a rate as possible before further drops.
Anna Bowes, co-founder of Savings Champion, said: “Although we are waiting for a base rate decision this week, we have seen the top interest rates on offer drifting downwards a little, although there have been a couple of brighter spots.
“The rate of the top three-year bond on offer has ticked up slightly to 4.65%, and the top three-year cash ISAs have remained steady.
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“Added to that, the top five-year ISAs available have increased ever so slightly over the last month – perhaps indicating that the markets are now thinking that rates may not fall by as much as previously thought over the next few years.”
Bowes added: “Although the longer-term rates are still paying less than the shorter term, the gap has narrowed a little, and with interest rates expected to start to fall again, while inflation is set to keep close to the 2% target, locking some of your cash up for longer could still be a wise thing to consider.”
Below, Savings Champion reveals the best buys across easy-access, notice, fixed rate and ISA cash accounts:
EASY-ACCESS ACCOUNTS
5% Chip/Clear Bank Easy Access Saver – minimum deposit £1. Apply and access via the Chip mobile app. Three penalty-free withdrawals allowed in a 12-month period. After your fourth withdrawal, the interest rate will drop to 3.9% AER for the remainder of the year. Rate includes a boosted rate of 0.93% AER for the first 12 months. Available exclusively through the Chip app via the partner ClearBank Limited. ClearBank Limited is covered by the Financial Services Compensation Scheme (FSCS), so funds deposited are protected up to £85,000.
4.9% Furness Building Society Double Access Saver (Issue 1) – minimum deposit £1. Apply and access online, by telephone or in branch. Up to two penalty-free withdrawals per annum, further withdrawals result in account transferring to an access account
4.89% Sidekick/GB Bank Easy Access Savings Account – minimum deposit £1,000. Apply and access via mobile app. Easy-access. Rate includes a 0.55% AER bonus for the first 12 months on balances up to £85,000. This savings account is powered by the provider’s partner, GB Bank Limited. GB Bank Limited is covered by the FSCS, so funds deposited are protected up to £85,000 subject to eligibility.
4.87% Monument Bank/Raisin UK – minimum deposit £1,000. Apply and access online. Available exclusively through the Raisin UK platform via the partner Monument Bank. Monument Bank is covered by the FSCS, so funds deposited are protected up to £85,000.
4.86% Chetwood Bank – minimum deposit £1. Apply and access online.
NOTICE ACCOUNTS
5.5% Prosper/Santander International 365 Day Notice Tracker – minimum deposit £20,000. Withdrawals are subject to 365 days’ notice; no earlier access is allowed. Rate tracks the Bank of England base rate. The account is available exclusively through the Prosper app, powered by the Akoni cash savings platform, and provided by Santander International. Santander International is covered by the FSCS, so funds deposited are protected up to £85,000. Be aware that any funds that you already hold with Santander International will also count towards this limit.
5.2% Prosper/Santander International 185 Day Notice Tracker – minimum deposit £20,000. Withdrawals are subject to 185 days’ notice; no earlier access is allowed. Rate tracks the Bank of England base rate. Be aware that any funds that you already hold with Santander International will also count towards this limit.
5.15% Oxbury 90 Day Notice Base Rate Tracker (Issue 6) – minimum deposit £20,000. Withdrawals are subject to 90 days’ notice; no earlier access is allowed.
5.15% BLME 90 Day Notice Account (Issue 6) – minimum deposit £10,000. Apply and access online. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed. The rate is not guaranteed; in order to comply with Sharia law, the rates listed are an expected profit rate.
5.14% OakNorth 95 Day Notice Base Rate Tracker Account – Issue 3 – minimum deposit £1. Apply online or via the OakNorth app and access online, via app, phone or by post. Withdrawals are subject to 95 days’ notice; no earlier access is allowed. The interest rate tracks the Bank of England base rate.
ONE-YEAR FIXED TERM BONDS
4.85% Isbank via Raisin 1 Year Fixed Term Deposit – minimum deposit £1,000. Apply via Raisin UK online. No access within the term.
4.8% The Access Bank Sensible Savings – 1 Year Fixed Rate Bond – minimum deposit £5,000. Apply online or by post. No access within the term.
4.8% Union Bank of India Fixed Rate Deposit – 1 Year – Apply by post or in branch. No access within the term.
TWO-YEAR FIXED TERM BONDS
4.62% United Trust Bank 2 Year Bond (Online Only) – minimum deposit £5,000. Apply online. No access within the term.
4.6% Smart Save 2 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.
4.6% Atom Bank 2 Year Fixed Saver – minimum deposit £50. Apply via app. No access within the term.
THREE-YEAR FIXED TERM BONDS
4.65% Market Harborough BS Fixed Term Bond 49 (31 January 2027) – minimum deposit £10,000. Apply online or in branch. No access within the term. The maturity date is 31 January 2027.
4.55% United Trust Bank 3 Year Bond (Online Only) – minimum deposit £5,000. Apply online. No access within the term.
4.53% Smart Save 3 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.
FIVE-YEAR FIXED TERM BONDS
4.38% Smart Save 5 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.
4.37% Oxbury Personal 5 Year Bond Account (Issue 8) – minimum deposit £1,000. Apply online. No access within the term.
4.36% DF Capital 5 Year Fixed Rate Deposit (Issue 2) – minimum deposit £1,000. Apply online. No access within the term.
VARIABLE-RATE CASH ISAS
5.17% Moneybox Chip Cash ISA – minimum deposit £500. Apply and access via online banking app. Easy-access. Transfers in are accepted. Up to three withdrawals can be made within a 12-month period from the date of opening the cash ISA without affecting the interest rate. If four or more withdrawals are made, rate drops to 0.75% for the remainder of the 12-month period. Rate includes a 0.45% bonus rate for the first 12-months. Moneybox Cash ISA funds are currently deposited with Santander UK Plc and HSBC Bank PLC, with 50% of your deposit held with each.
5.15% Trading 121 Cash ISA – minimum deposit £1. Apply online and access online and via mobile app. Transfers of existing ISA funds are allowed. Trading 212 uses a broad range of banks for its cash ISA, and the proportion of money held with each bank can vary over time. The three banks in question are Barclays, NatWest and JPMorgan Chase. Please contact Trading 212 directly for any specific questions on who your money is held with.
4.92% Plum/Citi Bank – minimum deposit £100. Apply and access via app. The rate of 4.92% AER includes a bonus of 0.88% for the first 12 months, providing the following conditions are met: The account balance is kept at £100 or more and you have no more than three withdrawals in a single year. Should you make a fourth withdrawal or your balance drop below £100, the interest rate will drop to 3% AER. Transfers of existing ISA funds are allowed, but these receive the basic rate of 4.04% AER. The basic rate of interest of 4.04% is paid monthly, and the Plum bonus rate of 0.88% will be added at the end of the first year. This savings account is powered by the provider’s partner, CitiBank. CitiBank is covered by the FSCS, so funds deposited are protected up to £85,000 subject to eligibility.
4.87% Paragon Bank Double Access ISA Issue 6 – minimum deposit £1. Apply and access online. Easy-access. Transfers in accepted. Two penalty-free withdrawals allowed each year. On third withdrawal within an account year, the rate decreases to 1.5% AER.
4.85% Principality Building Society – minimum deposit £1. Apply and access online. Five withdrawals permitted each tax year, but the ISA can be closed or transferred at any time. Rate includes a variable 1.55% bonus for the first 12 months. Transfers in are allowed. This ISA is flexible.
ONE-YEAR FIXED TERM CASH ISAS
4.51% Virgin Money 1 Year Fixed Rate Cash ISA Exclusive (Issue 17) – minimum deposit £1. Apply online or in branch. You need to have a current account with Virgin Money that was opened on or after 4 December 2019, or you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B. The maturity date is 30 September 2025. Full and partial withdrawals are permitted during the term, but you will be charged 60 days’ interest on the amount taken out.
4.47% Shawbrook 1 Year Fixed Rate Cash ISA Bond Issue 110 – minimum deposit £1,000. Apply online. Withdrawals allowed, subject to a 90-day interest penalty. Transfers in are accepted.
4.46% United Trust Bank Cash ISA 1 Year Bond (Online Only) – minimum deposit £500. Apply online. Access on closure, subject to a 180-day interest penalty. Transfers in are accepted.
TWO-YEAR FIXED TERM CASH ISAS
4.31% Castle Trust Bank 2 Year Fixed Rate e-Cash ISA – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to a withdrawal charge equivalent to 180 days’ interest. Transfers in are allowed.
4.3% Cynergy Bank 2 Year Fixed Rate Cash ISA – minimum deposit £500. Apply online. Access on closure, subject to a 180-day interest penalty. Transfers in are accepted.
4.3% Hodge Bank 2 Year Fixed Rate Cash ISA – minimum deposit £1,000. Apply online. Withdrawals allowed, subject to a 180-day interest penalty. Transfers in are accepted.
THREE-YEAR FIXED TERM CASH ISAS
4.31% UBL UK 3 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online, in branch, by post or mobile banking app. Access on closure only, subject to 270 days’ loss of interest. Transfers in accepted.
4.27% Hodge Bank 3 Year Fixed Rate Cash ISA – minimum deposit £1,000. Apply online. Withdrawals allowed, subject to a 270-day interest penalty. Transfers in are accepted.
4.25% Cynergy Bank 3 Year Fixed Rate Cash ISA – minimum deposit £500. Apply online. Access on closure, subject to a 270-day interest penalty. Transfers in are accepted.
FIVE-YEAR FIXED TERM CASH ISAS
4.12% Shawbrook 5 Year Fixed Rate Cash ISA Bond Issue 50 – minimum deposit £1,000. Apply online. Withdrawals allowed, subject to a 360-day interest penalty. Transfers in are accepted.
4.11% UBL UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply online, manage online, by post or phone. Withdrawals are allowed, subject to a withdrawal charge equivalent to 365 days’ interest. Interest can be withdrawn annually without penalty. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.
4.11% United Trust Bank Cash ISA 5 Year Bond – minimum deposit £5,000. Apply online. Withdrawals are allowed, subject to a withdrawal charge equivalent to 365 days’ interest. Interest can be withdrawn annually without penalty. Transfers in are allowed.
Rates correct as of 6 November 2024
