The New Year has inspired a fresh set of providers competing to offer the best savings rates this week, with the Post Office and ICICI Bank entering the charts.
However, it is the same providers as it was at the end of 2023 who continue to offer the best deals for savers in the easy access market.
In a year where the base rate set by the Monetary Policy Committee looks set to drop (maybe twice), securing the leading rates for your funds is more important than ever.
So, here are the best deals of the week, according to data from Moneyfacts.
Easy access accounts
Claiming first place is Metro Bank again, with an Instant Access Savings Account rate of 5.22% AER monthly. To secure the 3.46% bonus, £500 has to be deposited within the first 28 days of the account opening. If not, a lower price of 1.65% AER is added. Savers can enjoy withdrawals with no limitations but a day’s notice is needed to take out more than £1,000 worth of funds.
In second place is Ulster Bank’s Loyalty Saver Account priced at 5.20% AER paid yearly for savers with funds of £5,000 or more. Any investments below that amount will incur a lesser rate of 2.25% AER. Perks include no limits on withdrawals and can be accessible using a phone, the app, in a branch or online.
Completing the same trio of top deals as last time is Earl Shilton Building Society’s Bonus One Account. The account has a rate of 5.15% AER paid yearly and at least £5,000 is required to commence saving, but making more than one withdrawal comes with a reduced rate of 2.10% AER.
Fixed bond rates
In the fixed bond market, there is a three-way tie between ICICI’s UK SuperSaver Bond, Reliance Bank’s 1 Year Fixed Term Deposit and Al Rayan’s 12 Month Fixed Term Deposit for the top spot. Each offer 5.50% AER but ICIC and Reliance require a £1,000 deposit whereas Al Rayan needs £5,000 to get going.
Further additions with Reliance can be made within 14 days of the account opening but Al Rayan’s and ICICI’s do not permit any extra investments.
Reliance also offers the leading rate for a two-year fix with its 2 Year Fixed Term Deposit which has a 5.25% AER paid on maturity. To open the account, savers will need to complete the bank’s forms and send them by post to the provider but it can be managed online or over the phone thereafter. At least £1,000 is required to start saving and additions can only be made within the first 14 days.
For three-year fixed bonds, Post Office Money has a Growth Bond (Issue 57) with a rate of 5.00% AER. An initial investment of £500 is needed to get going, while if you want early access this account is not for you. Further additions are also not permitted on the deal which needs to be opened in branch or by post, although it can be managed online.
If a longer-term fixed bond is your preference, UBL UK has a 5-year Fixed Term Deposit Account at a price of 4.75% AER with interest paid monthly, on anniversary or maturity. Early access to the funds is not accepted and neither are any withdrawals. The provider also has an alternative Raisin UK – 5 Year Fixed Term Deposit account which needs £5,000 to open and interest is paid on maturity.
Notice accounts
The 30 and 60-day notice accounts remain unchanged this week.
FirstSave is the leading provider with its 30 Day Notice Account (Oct 23) priced at 5.00% AER on anniversary. This account must be opened online, but once £100 is deposited the transactions can be managed by post or by phone in the future. It also allows the option of receiving interest every month on a larger £5,000 deposit.
To have an account with more notice, The Raisin UK has a 60 Day Notice Account courtesy of Sharia Law bank QIB (UK) with an expected profit rate of 5.35% AER. The principles of Sharia-compliant banks do not condone money being made from interest, so if you want to make any withdrawals at all, 60 days’ notice will need to be given and the account will then be closed.
First Save also claims the best 90 days’ notice account with a 5.40% AER. The 90 Day Notice Account (Oct 23) requires a minimum deposit of £100 and you can add more funds without any limitations.
For each notice account, the period of days indicates the length of time you’ll need to give the provider before withdrawing any money from your investments.
