One-year deals hit 5.30% and all the week’s best savings accounts
They come from Al Rayan Bank and Vanquis Bank and there are now several accounts to choose from paying more than 5%.
Yet the highest rate of 5.30% is currently only beaten by a five-year account paying 5.35%. Therefore, while previously savers could usually get a higher rate of interest for locking their money away for longer, there’s currently very little difference between interest rates paid and the time money is fixed for.
This comes just three weeks after one-year savings accounts breached 5% for the first time since 2009.
Successive interest rate hikes by the Bank of England (BoE) are one of the reasons behind savings rates rises, yet it is still mainly challenger banks at the top of the savings tables.
Here we look at this week’s best rates across the savings market, according to data from Moneyfacts.
The best savings accounts of the week
For one-year accounts, two providers are in joint position. Al Rayan Bank’s 12 Month Fixed Term Deposit pays an expected profit rate of 5.30% on a minimum of £5,000. It can be opened online, by phone, or the bank’s mobile app and managed online, by mobile or by post.
Also paying 5.30% is Vanquis Bank’s Vanquis Bank Savings account which can be opened with £1,000. It can be opened online and managed online, by post, or by telephone. The bank also has a two-year account paying the same rate and with the same minimum deposit.
For two-year accounts, the highest rate currently available is also 5.30%, with the Close Brothers Savings’s 2 Year Fixed Rate Bond which can be opened online with £10,000. It can also be managed by post or by phone.
You also can’t get a higher rate for three-year accounts, with the market-leader from OakNorth Bank, which can be opened and managed online or via the bank’s app, paying 5.30% on a minimum opening deposit of £1.
The highest rate available across the fixed-term market comes from Tandem Bank via Raisin UK with its 5 Year Fixed Term Deposit paying 5.35%. It can be opened online or via the bank’s app with £1,000 and interest is paid yearly.
The best easy-access ISAs
There are two joint accounts this week both paying 3.75%. One is from Leeds BS with its Limited Issue Online Access ISA (Issue 61). This can be opened and managed online with a minimum deposit of £1,000.
The second place goes to 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:
- Charter Savings Bank’s Easy Access Cash ISA – Issue 36: paying 3.65% this account can be opened with £5,000 online.
- Paragon Bank’s Triple Access Cash ISA – Issue 13: also paying 3.65% this online ISA can be opened with £1 but the interest rate will drop after three withdrawals are made.
- Teachers BS’s Triple Access Cash ISA for Teachers (Issue 1): another account paying 3.65%, which can be opened with £100 either online or by post, this is only available to teachers and other education professionals.
The best notice ISAs
The current top spot for notice ISAs goes to Teachers BS’s Cash ISA Notice 120 (Issue 1). The 120-day notice ISA pays 4% is open to anyone and has a minimum opening deposit of £1,000. It can be opened online or by post.
In second-place is the Marsden BS 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.
The best fixed-rate ISAs
For fixed ISAs, this week’s best one-year account is the UBL UK 1 Year Fixed Rate Cash ISA paying 4.56% on a minimum of £1,000. It can be opened and managed by post, mobile, online or in a branch. Access is allowed but will result in a 90-day loss of interest penalty.
The next-best ISAs are as follows:
- Virgin Money 1 Year Fixed Rate Cash E-ISA Issue 589: this account pays 4.56% and can be opened and managed online with £1. Earlier access is allowed subject to a 60-day loss of interest penalty.
- OakNorth Bank’s Fixed Rate Cash ISA: paying 4.54% this account can be opened with £1 online or via the bank’s mobile app. Earlier access is allowed subject to a 90-day loss of interest penalty.
- UBL UK 2 Year Fixed Rate Cash ISA: paying 4.67% this account can be opened with £2,000 online, via the bank’s app, in a branch or by post. Earlier access is allowed subject to a 180-day loss of interest penalty.
- Virgin Money 3 Year Fixed Rate Cash E-ISA Issue 591: paying 4.70% 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, FirstSave 30 Day Notice Account (May23) paying 4%. It has a minimum opening deposit of £100 and can be opened online and also managed by post or phone.
The next-best is the Aldermore 30 Day Notice Account with an AER of 3.75% after a rate rise. It has a minimum opening deposit of £1,000 with interest paid away or compounded monthly or on anniversary.