It follows the worst decline in attractive offers for savers in ten years, with the average one-year fixed rate dropping to 5.13%.
In that market, Sharia law-compliant banks continue to offer great value as well as provide competitive notice accounts.
Here are the leading contenders in the savings market, according to Moneyfacts.
Easy access accounts
Metro Bank continues to dominate the market for savers who wish to dip into their funds, with its Instant Access Savings Account deal priced at 5.22% AER. There is an introductory bonus included (3.46%) for the first 12 months of the account opening if a balance of £500 is reached within the first 28 days. Withdrawals are unlimited but if you need to take out £1,000, the bank will need a working day’s notice to proceed.
In the second spot is Ulster Bank’s Loyalty Saver offer of 5.20% AER paid yearly on deposits of £5,000 or more. Any balances below that figure will receive a reduced 2.25% AER. This account also has no restrictions on accessing cash put into it.
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A new name in the easy access sector is Earl Shilton Building Society. Its Bonus One Account offers 5.15% AER and needs £5,000 to commence saving. Further additions are allowed, but 2.10% AER will be applied if more than one withdrawal of funds is made in a year.
Fixed bond rates
Metro Bank also leads the one-year fixed bond market, with 5.66% paid on your investment at £500, which is received monthly or on anniversary. A stipulation for the Fixed Term Savings Account is that customers will need to have another Metro Bank account or you’ll receive an automatic account from the provider for transactional purposes.
Union Bank of India (UK) Ltd keeps its place as the best two-year fixed bond deal, with its Fixed Rate Deposit paying 5.40% AER paid on a minimum deposit of £1,000 on maturity or anniversary. This account can only be managed and opened in a branch or by post. If you prefer digital transactions, an alternative is available but needs a bigger investment of £5,000.
The 5-Year Fixed Term Deposit from UBL is the best of its kind with a rate of 4.81% AER. A minimum of £2,000 is needed to begin saving, which can be progressed either in branch, by phone, post or using the app. Further additions are not accepted with this deal.
Notice accounts
For another week, FirstSave has the best rate around, for a 30-day notice account. The 30 Day Notice Account (Oct23) is 5.00% AER, which is paid on anniversary. At least £100 is needed on account opening, but interest can also be received monthly as long as £5,000 is deposited. Further additions are allowed on this offer without any restrictions.
In the 60-day market, customers should head to The Raisin UK for the top rate, as the Sharia law bank pays an expected profit rate of 5.35% AER monthly. The 60 Day Notice Account is digital, so savers need to have access to the app or use its website to manage any transactions. A minimum of £1,000 is required to get going with the provider.
Vanquis Bank has entered the top deals around for longer notice period accounts. Its 90 Day Notice Account (Issue 2) offers 5.50% AER which is paid either monthly or on anniversary and requires a deposit of £1,000. Further additions are available on the account too.
The notice period reflected in the account names denotes how much notice you’ll need to give the provider before withdrawing any funds.
