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Savers urged to switch as top rates fluctuate

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Caitlyn Eastell, Apprentice Press & PR Assistant
Caitlyn Eastell, Apprentice Press & PR Assistant T: 01603 476169 E: Email Caitlyn
19/06/2024

Savers urged to switch as top rates fluctuate

Savers will find some improvements to top paying accounts so reviewing their savings remains essential. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Savers urged to switch as top rates fluctuate

Savers will find some improvements to top paying accounts so reviewing their savings remains essential. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

  • The Consumer Price Index (CPI) fell to 2.0% during May, from 2.3% in April.
  • There are currently 1,622 savings accounts that beat inflation* (277 easy access, 160 notice accounts, 210 variable rate ISAs, 311 fixed rate ISAs and 664 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q2 2025 is 2.6%.
  • In June 2023, there were no deals that could beat 8.7% (May 2023 CPI) and in June 2022, there were no deals that could beat 9.1% (May 2022 CPI).
  • The Consumer Price Index (CPI) fell to 2.0% during May, from 2.3% in April.
  • There are currently 1,622 savings accounts that beat inflation* (277 easy access, 160 notice accounts, 210 variable rate ISAs, 311 fixed rate ISAs and 664 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q2 2025 is 2.6%.
  • In June 2023, there were no deals that could beat 8.7% (May 2023 CPI) and in June 2022, there were no deals that could beat 9.1% (May 2022 CPI).

 

Savings market analysis

Top savings deals at £10,000 gross

22-Jun-22

21-Jun-23

22-May-24

Today

Easy access account

Virgin Money – 1.55%***

Principality BS – 4.01%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Oxbury Bank – 1.95% ( 180-day)

RCI Bank UK – 4.85% (95-day)

DF Capital – 5.35%

Vanquis Bank – 5.35% (90 day)

One-year fixed rate bond

Atom Bank – 2.60%

Ahli United Bank (UK) plc – 5.70%

Habib Bank Zurich plc – 5.21%

Vanquis Bank – 5.21%

Two-year fixed rate bond

BLME – 3.00%**

Investec Bank plc (Raisin UK) – 5.60%

DF Capital – 5.07%

Vanquis Bank – 5.06%

Three-year fixed rate bond

BLME – 3.05%**

Investec Bank plc (Raisin UK) – 6.00%

Shawbrook Bank – 4.71%

UBL UK – 4.85% (payable on maturity)

Four-year fixed rate bond

BLME – 3.10%**

RCI Bank UK – 5.55%

Isbank (Raisin UK) – 4.50%

Isbank (Raisin UK) – 4.75%

Five-year fixed rate bond

BLME – 3.25%**

RCI Bank UK – 5.55%

Shawbrook Bank – 4.57%

UBL UK – 4.95% (payable on maturity)

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account Customers. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

22-Jun-22

21-Jun-23

22-May-24

Today

Easy access ISA

Paragon Bank – 1.35%

Shawbrook Bank – 3.78%

Plum – 5.06%

Trading 212 – 5.07%

Notice ISA

Aldermore – 1.40% (30-day)

Teachers BS – 4.00% (120-day)

West Brom BS – 5.10% (60-day)

West Brom BS – 5.10% (60-day)

One-year fixed rate ISA

Virgin Money – 2.06%

Virgin Money – 4.75%

Virgin Money – 5.05%

Virgin Money – 5.05%

Two-year fixed rate ISA

Virgin Money – 2.36%

Virgin Money – 4.91%

State Bank of India – 4.65%

United Trust Bank –  4.67%

Three-year fixed rate ISA

Leeds BS – 2.75%

Virgin Money – 5.00%

Shawbrook Bank – 4.41%

Principality BS – 4.50%

Four-year fixed rate ISA

UBL UK – 2.44% (payable on maturity)

United Trust Bank – 4.85%

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 2.74% (payable on maturity)

United Trust Bank – 4.90%

UBL UK – 4.42% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

 

 

Savings market analysis

Top savings deals at £10,000 gross

22-Jun-22

21-Jun-23

22-May-24

Today

Easy access account

Virgin Money – 1.55%***

Principality BS – 4.01%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Oxbury Bank – 1.95% ( 180-day)

RCI Bank UK – 4.85% (95-day)

DF Capital – 5.35%

Vanquis Bank – 5.35% (90 day)

One-year fixed rate bond

Atom Bank – 2.60%

Ahli United Bank (UK) plc – 5.70%

Habib Bank Zurich plc – 5.21%

Vanquis Bank – 5.21%

Two-year fixed rate bond

BLME – 3.00%**

Investec Bank plc (Raisin UK) – 5.60%

DF Capital – 5.07%

Vanquis Bank – 5.06%

Three-year fixed rate bond

BLME – 3.05%**

Investec Bank plc (Raisin UK) – 6.00%

Shawbrook Bank – 4.71%

UBL UK – 4.85% (payable on maturity)

Four-year fixed rate bond

BLME – 3.10%**

RCI Bank UK – 5.55%

Isbank (Raisin UK) – 4.50%

Isbank (Raisin UK) – 4.75%

Five-year fixed rate bond

BLME – 3.25%**

RCI Bank UK – 5.55%

Shawbrook Bank – 4.57%

UBL UK – 4.95% (payable on maturity)

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account Customers. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

22-Jun-22

21-Jun-23

22-May-24

Today

Easy access ISA

Paragon Bank – 1.35%

Shawbrook Bank – 3.78%

Plum – 5.06%

Trading 212 – 5.07%

Notice ISA

Aldermore – 1.40% (30-day)

Teachers BS – 4.00% (120-day)

West Brom BS – 5.10% (60-day)

West Brom BS – 5.10% (60-day)

One-year fixed rate ISA

Virgin Money – 2.06%

Virgin Money – 4.75%

Virgin Money – 5.05%

Virgin Money – 5.05%

Two-year fixed rate ISA

Virgin Money – 2.36%

Virgin Money – 4.91%

State Bank of India – 4.65%

United Trust Bank –  4.67%

Three-year fixed rate ISA

Leeds BS – 2.75%

Virgin Money – 5.00%

Shawbrook Bank – 4.41%

Principality BS – 4.50%

Four-year fixed rate ISA

UBL UK – 2.44% (payable on maturity)

United Trust Bank – 4.85%

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 2.74% (payable on maturity)

United Trust Bank – 4.90%

UBL UK – 4.42% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

 

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“Savers will find that there has been a hive of activity within the savings market over the past month, albeit relatively mixed with reductions, increases, launches and withdrawals. As a result, there have been a handful of new providers offering the top rates, but average rates have remained steady.

“One-year fixed bonds have seen a slight uptick month-on-month, however, savers who are about to have their bond expire will find that the current market-leading rate no longer beats that of June 2023, which may be discouraging but to be expected with the growing potential of a base rate cut in the future. In comparison, those who locked into a two-year term back in 2022 will find that the current top rates pay over 2% more interest and those who fixed for even longer will be able to get significantly higher rates if they decide to fix again. As inflation hovers around its 2% target, it may be more rewarding for savers to fix for longer, as the longer their savings beat inflation the more cash they can earn in real terms. Meanwhile, variable savings rates have seen little movement but continue to be dominated by challenger banks despite further pushes for fairer rates required by the FCA’s Consumer Duty rules.

“There was some volatility within the ISA market coming into the new tax-year, with many providers making rate changes. Despite this, savers can still grab variable rate and a one-year fixed ISA which pays over 5%. In the longer-term the top rates have seen a boost which may be ideal for those who wish to utilise their personal allowances and receive a guaranteed return. However, as a whole, the top ISA rates continue to pay less than their savings counterparts.

“With several new providers entering the top rate tables it is crucial that savers review their nest egg to ensure their loyalty is being repaid and are willing to switch if more enticing deals appear elsewhere. In any case, savers should consider all relevant criteria and ensure the account is the correct choice for them.”

*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs, and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“Savers will find that there has been a hive of activity within the savings market over the past month, albeit relatively mixed with reductions, increases, launches and withdrawals. As a result, there have been a handful of new providers offering the top rates, but average rates have remained steady.

“One-year fixed bonds have seen a slight uptick month-on-month, however, savers who are about to have their bond expire will find that the current market-leading rate no longer beats that of June 2023, which may be discouraging but to be expected with the growing potential of a base rate cut in the future. In comparison, those who locked into a two-year term back in 2022 will find that the current top rates pay over 2% more interest and those who fixed for even longer will be able to get significantly higher rates if they decide to fix again. As inflation hovers around its 2% target, it may be more rewarding for savers to fix for longer, as the longer their savings beat inflation the more cash they can earn in real terms. Meanwhile, variable savings rates have seen little movement but continue to be dominated by challenger banks despite further pushes for fairer rates required by the FCA’s Consumer Duty rules.

“There was some volatility within the ISA market coming into the new tax-year, with many providers making rate changes. Despite this, savers can still grab variable rate and a one-year fixed ISA which pays over 5%. In the longer-term the top rates have seen a boost which may be ideal for those who wish to utilise their personal allowances and receive a guaranteed return. However, as a whole, the top ISA rates continue to pay less than their savings counterparts.

“With several new providers entering the top rate tables it is crucial that savers review their nest egg to ensure their loyalty is being repaid and are willing to switch if more enticing deals appear elsewhere. In any case, savers should consider all relevant criteria and ensure the account is the correct choice for them.”

*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs, and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant