Following the base rate being sliced to 5% in August, providers have followed suit by knocking down the interest rates on their savings accounts.
As it stands, the average rate for easy-access accounts is 3.07% – a drop from 3.14% in the previous month.
This marked the largest monthly dip for six months, which coincided with the total number of cash ISA deals marginally dipping to 553.
Using data from Moneyfacts, here are the best savings rates across the market.
Easy-access accounts
The leading rate for easy-access accounts is 5.2% AER yearly on the Loyalty Saver from Ulster Bank and is open to both existing and new customers.
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This account can be opened online, by phone or with the bank’s app and does not need a minimum deposit to get started.
You’ll need a sizeable deposit, as a 2.25% AER rate is applied if less than £5,000 is in the account.
But there is flexibility, in that you can make an unlimited number of withdrawals and you can add to your first deposit with no restriction.
In second place is the Chip Easy Access Saver (powered by ClearBank) with a 5% AER matching the Bank of England base rate, which is paid monthly.
This app-only offer also comes with a 0.93% bonus rate, which is applied after a year of the account opening. There is no minimum deposit required, although you’ll need to have a current account with ClearBank to get going. While there are no penalties for further additions, there is a maximum of three withdrawals each year, when a lower rate is implemented.
Monument Bank makes up the top three providers, with its Raisin UK – Easy Access Account offering 4.87% AER monthly. You’ll need the app or online banking to progress and at least £1,000 to add.
Further investments can be made but must be at least £500 each time.
Best fixed rate bonds
In the fixed rate bond market, Mizrahi Tefahot Bank Ltd leads the way, with the Raisin UK – 1 Year Fixed Term Deposit. This requires a minimum of £1,000 in the account and needs to be opened through the Raisin UK app or website. It is worth noting that once you add to this account, you cannot withdraw from or add to it.
For slightly more flexibility, the RCI Bank has the next-best rate at 4.7% AER paid monthly or on anniversary on a £1,000 deposit.
You can add to your funds in the 2 Year Fixed Term Savings Account up to two weeks after you open the account, but you need to wait until the full term length before accessing the funds.
For a longer-term deal, Birmingham Bank offers the best rate on its 3 Year Fixed Rate Bond – Issue 11, with 4.53% AER on anniversary.
This can be opened online but then managed by post or on the phone. Early access is not permitted but the £5,000 minimum deposit can be added for a further 14 days from a nominated account.
Meanwhile, Hodge Bank’s 5 Year Fixed Rate Bond has the best of the five-year options, paying 4.37% AER monthly or on anniversary. The online account allows additional funds up to a fortnight after you open the account, but early access is not part of the deal.
Notice accounts saving rates
In the 30-day market, Charter Savings Banks tops the chart with a 30-Day Notice – Issue 22, offering 4.85% AER either on the anniversary or monthly. The account requires at least £5,000 to open it and can be added without restriction with a nominated account.
For double that notice term, Vanquis Bank’s 60-Day Notice (Issue 2) is the account to beat, with a 5.05% AER paid monthly or on anniversary. The online-only account needs a £1,000 deposit, which can be added to without restriction.
The 90-day market is topped by the Bank of London and The Middle East’s 90 Day Notice Account (Issue 6) with a 5.15% AER expected profit rate paid quarterly. For more information on how Sharia law banks calculate that rate, read our guide to Sharia law banks.
This account needs a hefty £10,000 as a deposit, which can be added to without restriction. If you want to release any funds, you have to wait 90 days and the amount has to be at least £1,000.
