You are here: Home - Saving-Banking - News -

Savings rate rises: Easy access ISAs are this month’s ‘hero’ as rate increases slow

0
Written by:
07/11/2022
Savings rates are still rising but the pace of those increases has slowed, particularly for fixed rate cash ISA products. Indeed, depending on your circumstances, easy access may now be the way to go.

From easy access, to bonds, to ISAs, savings rates have been on the rise since the start of the year. However, according to Savings Champion, those rates are beginning to slow down somewhat.

Best bond and easy access rates

Currently, savers can get the following rates on easy access and fixed savings products, according to Savings Champion data:

  • 2.81% on an easy access account
  • 4.60% on a one-year bond
  • 5.00% on a two-year bond
  • 5.00% on a three-year bond
  • 5.10% on a five-year bond

Get your hands on an easy access ISA

While rates are still rising on most ISA products, “the pace has definitely slowed, especially fixed term cash ISAs”, according to Anna Bowes, co-founder of Savings Champion.

At present, savers can get the following rates on easy access and fixed rate ISA, according to Savings Champion.

  • 2.50% on an easy access cash ISA
  • 3.90% on a one-year fixed term cash ISA
  • 4.36% on a two-year fixed term cash ISA
  • 4.41% on a three-year fixed term cash ISA
  • 4.31% on a five-year fixed term cash ISA

Bowes said: “The hero of the month has been easy access cash ISAs with the top rate on offer increasing from 1.90% to 2.50% closer but still below the best non ISA easy access rate which is paying 2.81% AER.”

She pointed out that fixed term ISA rates had slowed but that bond rates were also decelerating and that the gap between best-paying bonds and equivalent ISAs has narrowed considerably over the last few months.

She said: “A year ago, the best one-year bond was 32% higher than the best one-year ISA (1.34% compared to 0.91%). Today, the top bond is 4.60% whilst the top ISA 3.90%, a gap of just over 15% still considerable, but much reduced.

“And importantly, the net rate of the bond after 20% tax has been deducted is 3.68%, so lower than the tax-free ISA rate – making ISAs still worth a look for those who will be utilising their Personal Savings Allowance.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week