After a raft of cuts among providers, there are fresh offers for the top fixed and notice accounts with the best savings rates this week.
Despite the drops in prices, there is a slew of accounts paying well over the 4% inflation rate, which was announced on Valentine’s day.
Here are the leading deals from a mix of high-street banks and online providers, according to data from Moneyfacts.
Easy access accounts
Ulster Bank continues to provide the best rate with its Loyalty Saver account for 5.20% AER. This is for balances over £5,000 – any below that amount receive a 2.25% AER instead. The account can be opened by phone, app, or online, but managed in a branch after. From then, there are no limitations on withdrawing the funds – but you’ll need to open a current account to begin saving.
Paragon Bank has replaced Coventry Building Society for the second-best rate, with a 5.16% price on the Double Access Savings Account – Issue 6. This online-only option requires £1,000 as a deposit, but additional funds can be made if more than two withdrawals are made in a year-long period, and a lower rate (1.50% AER) will hit the account.
Slipping down to third place is the Triple Access Saver (Online) (2) Coventry Building Society offer. This 5.15% AER deal is marginally lower than Paragon, but one more withdrawal is permitted through the mutual. However, a smaller deposit is needed (£1) and any more than three withdrawals are subject to 50 days’ loss of interest.
Fixed-bond rates
SmartSave is still leading the way with its 1 Year Fixed Rate Saver account, while its three-year equivalent is also market-leading. The shorter-term fix is priced at 5.21% AER, while the 3 Year Fixed Rate Saver is 4.61% AER. A big deposit (£10,000) is required to open the account and early access is not accepted, but further additions are allowed within 14 days of the account opening. Interest for both accounts is paid on maturity.
The 5.10% rate (paid on maturity) from iFAST Global Bank’s Fixed Term Deposit is the top two-year fixed bond around, while it also needs no minimum funds to open. Although, as no further additions are accepted, some planning is required when you weigh up your returns on this online/mobile app account.
That 5.10% top rate is matched by Allied Irish Bank (GB), AIB (NI), and Market Harborough Building Society. For a larger deposit – AIB’s online Fixed Rate Saver has a £5,000 minimum, as do Market Harborough’s Fixed Term Bond 29 and 30 offers, which do not accept withdrawals.
There’s also a tie for the top five-year rate this week. Both Atom Bank and Sharia-law-compliant Isbank, through third-party Raisin UK, pay 4.50%. An investment of £50 is needed to open and additions can be made a week after the account’s opening.
Differences between the two are found in the deposits, the Raisin UK – 5 Year Fixed Term Deposit needs £1,000 and the 5 Year Fixed Saver from Atom just needs £50. Atom also offers further additions to boost your returns.
Notice accounts
Despite reducing its rates, FirstSave still provides the leading price in the 30-day notice market but has lost the top spot in the 60-day sector. Its 30 Day Notice Account (Oct 23) pays 4.85% AER on anniversary, and a deposit of £100 is needed to start saving. If you have a bigger savings pot, a monthly interest option is available for deposits of £5,000 or more. As is the case with notice accounts, 30 days of loss of interest is applied if you access your funds early. However, additional deposits are accepted without any penalties.
QIB (UK) has replaced FirstSave in the 60-day rankings in an online/app-only account provided by third-party Raisin UK. The 60 Day Notice Account pays an expected rate of 5.35% AER monthly and needs £1,000 in the pot to open. Early access to the account requires 60 days’ notice and the full balance to be withdrawn, and further funds are also not permitted.
Vanquis Bank has entered the best savings rates this week, offering the best 90-day deal on the longer-term notice market. The 90 Day Notice Account (Issue 3) pays 5.40% AER and interest is paid on anniversary. A £1,000 deposit is needed to secure the market-leading rate, which accepts withdrawals with the appropriate notice, but early access is not part of this deal.
