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Savings market 'holding its breath': Top-paying accounts right now

Savings market 'holding its breath': Top-paying accounts right now
Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
07/05/2024
Updated:
09/05/2024

As we await this week's base rate decision, here are the current top-paying cash savings products.

Leaving your money languishing in a low-paying savings or current account means you could be missing out on valuable interest. With the cost-of-living crisis still impacting household finances, and inflation remaining above the 2% target, spending power continues to be curbed, meaning it’s more important than ever to make every penny count.

Savings interest rates had been rising off the back of 14 consecutive Bank of England base rate hikes before the bank paused its rate-hiking cycle, leaving it to stand at 5.25%.

In recent weeks, savings rates have fallen, but reductions have slowed down, according to Anna Bowes, co-founder of Savings Champion.

She says: “Whilst overall the best buy savings rates have continued to fall, things have slowed considerably as the anticipated cut to the Bank of England base rate has been pushed back because of stickier-than-expected inflation.

“It feels like the savings market is holding its breath, waiting to see what the Bank of England will announce at the next Monetary Policy Committee (MPC) meeting on Thursday 9 May.”

However, Savings Champion data reveals there have been some rate hikes to the top three-year and five-year bonds – although these rates continue to be lower than the short-term bonds.

“This inverted curve is unusual, as you would normally expect to be rewarded for locking your money up for longer. But it’s a really telling indication that interest rates are still expected to fall in the next few months and years.

“So, whilst a longer-term savings account might offer less interest immediately, with inflation falling and interest rates expected to start falling too, it could be a wise idea to lock up some of your cash… it would be good to think that at least some of your savings is hedged against falling interest rates, and enjoying a return that is higher than inflation for longer – something that is rarely the case.”

Below, Savings Champion lists all the top-paying accounts, from easy-access savings to fixed rate bonds, notice accounts to ISAs:

EASY-ACCESS ACCOUNTS

5.02% Oxbury Easy Access Account (Limited Edition 1) – minimum deposit £20,000. Apply and access online.

5.01% Monument Easy Access Savings – minimum deposit £25,000. Apply and access via mobile banking app.

5% Raisin/Paragon Rainy Day Saver 2024 Easy Access (provided by Paragon) – minimum deposit £10,000. Apply and access online via the Raisin UK cash platform. There is no limit to the number of withdrawals you can make; however, you are unable to withdraw less than £500 in a single withdrawal transaction, and a withdrawal will not be authorised if it leaves your balance below £10,000. In this scenario, you must arrange for your account to be closed.

5% Close Brothers Easy Access Account (Issue 3) – minimum deposit £10,000. Apply and access online.

4.96% Kent Reliance Easy Access Savings Account (Issue 70) – minimum deposit £1,000. Apply and access online or in branch.

NOTICE ACCOUNTS

5.25% Investec 90 Day Notice Saver – minimum deposit £5,000. Apply and access online. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed.

5.25% Hinckley & Rugby BS 180 Day Notice – minimum deposit £2,500. Apply and access in branch or by post. Withdrawals are subject to 180 days’ notice only; no earlier access is allowed.

5.25% UTB 180 Day Notice Base Rate Tracker – minimum deposit £5,000. Apply and access online. Withdrawals are subject to 180 days’ notice only; no earlier access is allowed. This account tracks the Bank of England base rate. Interest is paid annually.

5.2% Raisin/QIB (UK) plc 95 Day Notice Account (provided by QIB UK plc) – minimum deposit £1,000. Apply online via the Raisin UK cash platform. You may withdraw the full deposit amount only, which will be subject to a 95-day notice period.

5.2% OakNorth Bank 95 Day Notice Base Rate Tracker Account (Issue 1) – minimum deposit £1. Apply online or via mobile banking app. Access online, via app, post or email. Withdrawals are subject to 95 days’ notice only; no earlier access is allowed. The interest rate tracks the Bank of England base rate.

ONE-YEAR FIXED TERM BONDS

5.18% Habib Bank AG Zurich 12 Month Fixed Rate eDeposit – minimum deposit £5,000. Apply via mobile banking (app). No access within the term.

5.18% SmartSave 1 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

5.17% Allica Bank 12 Month Fixed Term Personal Savings Account – minimum deposit £10,000. Apply online. No access within the term.

TWO-YEAR FIXED TERM BONDS

5.05% RCI Bank 2 Year Fixed Term Savings Account – minimum deposit £1,000. Apply online. No access within the term.

4.96% SmartSave 2 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.95% Atom Bank 2 Year Fixed Saver – minimum deposit £50. Apply via mobile banking app. No access within the term.

THREE-YEAR FIXED TERM BONDS

4.73% Birmingham Bank 3 Year Fixed Rate Bond (Issue 5) – minimum deposit £5,000. Apply online. No access within the term.

4.72% SmartSave 3 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.71% Shawbrook Bank 3 Year Fixed Rate Bond (Issue 68) – minimum deposit £1,000. Apply online. No access within the term.

FIVE-YEAR FIXED TERM BONDS

4.58% SmartSave 5 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.57% Shawbrook Bank 5 Year Fixed Rate Bond (Issue 49) – minimum deposit £1,000. Apply online. No access within the term.

4.56% Hodge 5 Year Fixed Rate Bond (online only) – minimum deposit £1,000. Apply online. No access within the term.

VARIABLE RATE CASH ISAS

5.17% Plum Cash ISA – minimum deposit £100. Apply and access via mobile app. The rate of 5.17% AER includes a bonus of 0.88% for the first 12 months, providing the following conditions are met: The account balance is kept at £100 or more and you have no more than three withdrawals in a single year. Should you make a further withdrawal or your balance drops below £100, the interest rate will drop to 3% AER. Transfers of existing ISA funds are allowed, but these receive the basic rate of 4.29% AER. The basic rate of interest of 4.29% is paid monthly, and the Plum bonus rate of 0.88% will be added at the end of the first year. This is not a flexible ISA. This savings account is powered by the provider’s partner, CitiBank.

5.16% Moneybox Cash ISA – minimum deposit £500. Apply and access via mobile app. Up to three withdrawals can be made within a 12-month period from the date of opening the cash ISA without affecting the interest rate. If four or more withdrawals are made, a lower rate of 0.75% will be applied for the remainder of the 12-month period. Rate includes a 0.85% bonus rate for the first 12-months. Cash ISA transfers in are accepted. Interest is accrued daily, but paid on account open anniversary.

5.1% Chip Cash ISA – minimum deposit £1. Apply and access via mobile app. Transfers in are not accepted currently. This is a flexible ISA. This savings account is powered by the provider’s partner, ClearBank Limited. ClearBank Limited is covered by the Financial Services Compensation Scheme (FSCS), so funds deposited are protected up to £85,000, subject to eligibility.

5.1% The West Brom BS WebSave 60 Day Notice ISA Account (Issue 2) – minimum deposit £1. Apply and access online. You can make withdrawals by giving 60 days’ notice or you can withdraw earlier at a charge equivalent to 60 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA.

5.08% Zopa Easy Access ISA – minimum deposit £1. Apply and access via mobile app. Rate includes a 0.5% AER bonus that runs until 6 April 2025. Transfers in are not currently accepted from other providers. This is a flexible ISA.

ONE-YEAR FIXED TERM CASH ISAS

5.05% Virgin Money 1 Year Fixed Rate Cash ISA Exclusive (Issue 12) – minimum deposit £1. Apply online or in branch. You need to have a current account with Virgin Money that was opened on or after 4 December 2019, or you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B. The maturity date is 31 March 2025. Full and partial withdrawals are permitted during the term, but you will be charged 60 days’ interest on the amount taken out.

4.72% OakNorth Bank 12 Month Fixed Rate Cash ISA – minimum deposit £1. Apply online and mobile app. Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed.

4.72% Shawbrook Bank 1 Year Fixed Rate Cash ISA Bond (Issue 94) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed.

TWO-YEAR FIXED TERM CASH ISAS

4.63% Shawbrook Bank 2 Year Fixed Rate Cash ISA (Issue 82) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed.

4.62% OakNorth Bank 24 Month Fixed Rate Cash ISA – minimum deposit £1. Apply online and mobile app. Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed.

4.6% Bath BS 2 Year Fixed Rate ISA (Issue 5) – Apply and access online, by post or telephone. Withdrawals are allowed up to £500 per day or electronically to your nominated bank account subject to 180 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

THREE-YEAR FIXED TERM CASH ISAS

4.41% Shawbrook Bank 3 year Fixed Rate Cash ISA Bond (Issue 55) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 270 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.4% OakNorth Bank 36 Month Fixed Rate Cash ISA – minimum deposit £1. Apply online. Withdrawals are allowed, subject to 270 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.35% Secure Trust Bank 3 Year Fixed Rate Cash ISA (07.06.27) – minimum deposit £1,000. Apply online. You may withdraw the whole balance by closing the account. If you decide to close the account before it matures, Secure Trust makes an ‘early-access charge’ of 270 days’ interest. The maturity date is 7 June 2027. Transfers in are accepted. This is not a flexible ISA.

FIVE-YEAR FIXED TERM CASH ISAS

4.07% Shawbrook Bank 5 Year Fixed Rate Cash ISA Bond (Issue 46) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 360 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.06% UBL UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply in branch, online, by post or via mobile app. Access on closure or full transfer out only, subject to 365 days’ loss of interest. Transfers in are accepted. Interest is paid on maturity, annually, quarterly or monthly. Interest must be paid to a nominated account; it cannot be added to the account unless it is paid on maturity.

4.05% Beehive Money Five Year Fixed ISA – minimum deposit £500. Apply online. No access to the account during the fixed rate period – 31 May 2029, although transfers out allowed subject to 365 days’ interest charge. Transfers in are allowed in full only.

Related: Virgin Money launches 10% current account interest bonus