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Move fast as one-year savings rates hit 5.25% PLUS all the week’s best savings accounts

Rebecca Goodman
Written By:
Rebecca Goodman
Posted:
Updated:
31/05/2023

A new one-year fixed-rate account has launched paying 5.25% from National Bank of Egypt, through Raisin UK.

This is the first time an account has paid 5.25% or more gross interest since December 2008, according to Moneyfacts.

It comes just two weeks after rates on one-year savings accounts breached 5% for the first time since 2009.

There’s also a new market-leader in the easy-access ISA tables from Virgin Money (available from 1 June) paying 3.75% but this one is only available to those with a linked current account.

Following the Bank of England (BoE) rate rise earlier this month, some providers have reacted by pushing up interest rates. However, it’s still largely challenger banks at the top of the tables and the high street banks have been repeatedly accused of being too slow to pass on rate hikes.

Here we look at all of the week’s top savings accounts, according to Moneyfacts.

The best savings accounts of the week

This week’s market-leader in the one-year fixed-rate accounts is the National Bank of Egypt account paying 5.25%, which is available through Raisin UK. Interest is paid on maturity of the account which can be opened online and also managed by post or phone. You’ll need to deposit £10,000 or more to open this account.

Alternatively, for those with a lower deposit amount, the Tandem Bank 1 Year Fixed Saver pays 5.15% AER on a minimum £1. Interest must be paid away and is paid on anniversary. It can be opened online or via mobile and allows further additions within 14 days of account opening.

For two-year fixed-rate accounts the highest interest rate is 5.25% AER, again offered by Tandem Bank on a minimum £1 while for three-year accounts Tandem Bank pips its competitors with its 5.30% AER offering.

The best easy-access ISAs

This week’s top spot, with its rate rising tomorrow (June 1), is an easy-access account from Virgin Money paying 3.75%. This is only available for customers who have a Virgin Money current account.

The next-best accounts are as follows:

  1. Cynergy Bank’s Online ISA (Issue 37): paying 3.62%, this online account can be opened with £1.
  2. Yorkshire Building Society’s Limited Access e-ISA: paying 3.60%, you can open this account online with £1. This account can be opened and managed online but the building society also has another ISA, paying the same rate, which can be opened and managed in a branch or by post.
  3. Principality BS’s Online ISA: this account pays 3.57% and is also an online account which can be opened with £1.

The best notice ISAs

There have been some big changes in the notice ISA space this week.

The current top spot goes to Marsden BS with its Branch Cash ISA 180 (Issue 1) paying 4%. It’s a 180-day notice ISA and can only be opened and managed in a branch. It can be opened with £1,000 and early access is allowed but will result in a 180-day loss of interest penalty.

Teachers BS is in the second position with its Cash ISA Notice 120 (Issue 1). It pays 3.75% on a minimum of £1,000. The account can be opened online or by post, and managed online or on the phone.

The best fixed-rate ISAs

For fixed ISAs, this week’s best one-year account is the Castle Trust Bank Fixed Rate e-Cash ISA paying 4.51%. It can be opened with £1,000 online or via the bank’s app and managed this way too. Interest will be paid on maturity of the account.

The next-best ISAs are as follows:

  1. Virgin Money 1 Year Fixed Rate Cash E-ISA Issue 586 this account pays 4.47% and can be opened and managed online with £1. Earlier access is allowed subject to a 60-day loss of interest penalty.
  2. Close Brothers 2 Year Fixed Rate Cash ISA paying 4.65% on a minimum of £10,000. Earlier access is allowed subject to a 150-day loss of interest penalty.
  3. Virgin Money 3 Year Fixed Rate Cash E-ISA Issue 588: paying 4.62% this account can be opened with £1. Earlier access is available but will result in a 120-day loss of interest penalty. It can only be opened and managed online.

The best notice savings accounts

There is a new product in the top spot this week, the RCI Bank E-Volve Savings 14 Day Notice Account paying 3.70% on a minimum of £1,000. It can be opened online and also managed through the bank’s mobile app.

The next-best is the Aldermore 30 Day Notice Account with an AER of 3.20%. It has a minimum opening deposit of £1,000 with interest paid away or compounded monthly or on anniversary. Withdrawals are subject to a 30-day notice period, or funds can be accessed earlier subject to a 30-day loss of interest. It can only be opened and managed online.

The top 45-day account is the Furness BS’s 45 Day Notice Cash ISA paying 3.65% AER. It has a minimum deposit of £1,000 and you need to open this one in a branch or by post. It can also be managed over the phone once opened.