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Savings providers move to adjust top fixed bond rates

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
16/11/2022

Savings providers move to adjust top fixed bond rates

Consumers will find some of the top fixed bond savings deals have reduced since the last inflation announcement, reaffirming the need for savers to act with pace. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

Savings providers move to adjust top fixed bond rates

Consumers will find some of the top fixed bond savings deals have reduced since the last inflation announcement, reaffirming the need for savers to act with pace. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 11.1% during October, from 10.1% in September.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 11.1%*.
  • The predicted rate for inflation during Q4 2023 is 5.2%.
  • In November 2021, there were no deals that could beat 4.2% (October 2021 CPI) and in November 2020, 227 deals (seven easy access, 17 notice accounts, four variable rate ISAs, 38 fixed rate ISAs and 161 fixed rate bonds) could beat 0.7% (October 2020 CPI)*.
  • The Consumer Price Index (CPI) rose to 11.1% during October, from 10.1% in September.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 11.1%*.
  • The predicted rate for inflation during Q4 2023 is 5.2%.
  • In November 2021, there were no deals that could beat 4.2% (October 2021 CPI) and in November 2020, 227 deals (seven easy access, 17 notice accounts, four variable rate ISAs, 38 fixed rate ISAs and 161 fixed rate bonds) could beat 0.7% (October 2020 CPI)*.

Savings market analysis

Top savings deals at £10,000 gross

18-Nov-20

17-Nov-21

19-Oct-22

Today

Easy access account

ICICI Bank UK – 0.75%***

Shawbrook Bank – 0.67%

Skipton BS – 2.55%

HSBC – 2.96%

Notice account

UBL UK – 1.00% (35-day)

Secure Trust Bank – 1.10% (120-day)

BLME – 2.75% (90-day)**

OakNorth Bank – 3.15% (120-day)

One-year fixed rate bond

Al Rayan Bank – 1.08%**

Union Bank of India (UK) Ltd – 1.35%

JN Bank – 4.75%

Ikano Bank – 4.50%

Two-year fixed rate bond

Al Rayan Bank – 1.25%**

Gatehouse Bank – 1.60%**

JN Bank – 5.00%

RCI Bank UK – 4.85%

Three-year fixed rate bond

Al Rayan Bank – 1.41%**

UBL UK – 1.85%

Gatehouse Bank – 5.00%**

Tandem Bank – 4.90%

Four-year fixed rate bond

BLME – 1.30%**

Gatehouse Bank – 1.92%**

Gatehouse Bank – 5.05%**

RCI Bank UK – 4.90%

Five-year fixed rate bond

BLME – 1.50%**

UBL UK – 2.14%

Gatehouse Bank – 5.10%**

Tandem Bank –  5.00%

**Islamic bank, pays an expected profit rate. ***NS&I excluded from top rate position as rates were due to be cut. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

18-Nov-20

17-Nov-21

19-Oct-22

Today

Easy access ISA

Paragon Bank – 0.65%

Shawbrook Bank – 0.67%

Coventry BS – 2.25%

Virgin Money – 3.00%

Notice ISA

Teachers BS – 0.70% (90-day)

Aldermore – 0.55% (30-day)

Aldermore – 2.05% (30-day)

Aldermore – 2.80% (30-day)

One-year fixed rate ISA

Virgin Money – 1.00%

West Brom BS – 1.00%

Shawbrook Bank – 3.90%

Kent Reliance –  3.95%

Two-year fixed rate ISA

Newcastle BS – 0.80%

West Brom BS – 1.25%

Kent Reliance – 4.30%

State Bank of India – 4.65%

Three-year fixed rate ISA

Coventry BS – 0.85%

West Brom BS – 1.50%

Virgin Money – 4.35%

State Bank of India – 4.65%

Four-year fixed rate ISA

Hodge Bank – 0.75%

UBL UK – 1.38% (payable on maturity)

Gatehouse Bank – 4.20%**

Gatehouse Bank – 4.20%**

Five-year fixed rate ISA

UBL UK – 1.18% (on maturity)

West Brom BS – 2.00%

Furness BS – 4.20%

State Bank of India – 4.65%

**Islamic bank, pays an expected profit rate. Source: Moneyfacts.co.uk

Savings market analysis

Top savings deals at £10,000 gross

18-Nov-20

17-Nov-21

19-Oct-22

Today

Easy access account

ICICI Bank UK – 0.75%***

Shawbrook Bank – 0.67%

Skipton BS – 2.55%

HSBC – 2.96%

Notice account

UBL UK – 1.00% (35-day)

Secure Trust Bank – 1.10% (120-day)

BLME – 2.75% (90-day)**

OakNorth Bank – 3.15% (120-day)

One-year fixed rate bond

Al Rayan Bank – 1.08%**

Union Bank of India (UK) Ltd – 1.35%

JN Bank – 4.75%

Ikano Bank – 4.50%

Two-year fixed rate bond

Al Rayan Bank – 1.25%**

Gatehouse Bank – 1.60%**

JN Bank – 5.00%

RCI Bank UK – 4.85%

Three-year fixed rate bond

Al Rayan Bank – 1.41%**

UBL UK – 1.85%

Gatehouse Bank – 5.00%**

Tandem Bank – 4.90%

Four-year fixed rate bond

BLME – 1.30%**

Gatehouse Bank – 1.92%**

Gatehouse Bank – 5.05%**

RCI Bank UK – 4.90%

Five-year fixed rate bond

BLME – 1.50%**

UBL UK – 2.14%

Gatehouse Bank – 5.10%**

Tandem Bank –  5.00%

**Islamic bank, pays an expected profit rate. ***NS&I excluded from top rate position as rates were due to be cut. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

18-Nov-20

17-Nov-21

19-Oct-22

Today

Easy access ISA

Paragon Bank – 0.65%

Shawbrook Bank – 0.67%

Coventry BS – 2.25%

Virgin Money – 3.00%

Notice ISA

Teachers BS – 0.70% (90-day)

Aldermore – 0.55% (30-day)

Aldermore – 2.05% (30-day)

Aldermore – 2.80% (30-day)

One-year fixed rate ISA

Virgin Money – 1.00%

West Brom BS – 1.00%

Shawbrook Bank – 3.90%

Kent Reliance –  3.95%

Two-year fixed rate ISA

Newcastle BS – 0.80%

West Brom BS – 1.25%

Kent Reliance – 4.30%

State Bank of India – 4.65%

Three-year fixed rate ISA

Coventry BS – 0.85%

West Brom BS – 1.50%

Virgin Money – 4.35%

State Bank of India – 4.65%

Four-year fixed rate ISA

Hodge Bank – 0.75%

UBL UK – 1.38% (payable on maturity)

Gatehouse Bank – 4.20%**

Gatehouse Bank – 4.20%**

Five-year fixed rate ISA

UBL UK – 1.18% (on maturity)

West Brom BS – 2.00%

Furness BS – 4.20%

State Bank of India – 4.65%

**Islamic bank, pays an expected profit rate. Source: Moneyfacts.co.uk

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Savers will find providers have reviewed their table-topping cash interest rates in recent weeks, with notable attention made to fixed rate bonds and ISAs. Since the last inflation announcement, some of the top fixed rate bonds have seen reductions but further adjustments could be set to come. Savers may need to act with pace if they wish to take advantage of the current rates on offer. Inflation is still way above the Government’s target of 2% and it is eroding cash in real terms at its present level, but this should not discourage savers from comparing rates and switching to a better deal.

“Those savers who are prepared to lock their cash away for a year will find the top rate of 4.50% (Ikano Bank) is significantly higher than last year’s top deal, of 1.35% (Union Bank of India (UK) Ltd). Notable improvements have been made to longer-term fixed bonds since last year, but due to the volatility of interest rates over this period, savers who want a guaranteed return may well act on the side of caution and stick to shorter-term bonds. ISA rates are encouragingly on the rise, but there is still a rate gap between the top fixed ISAs and fixed bonds. It is essential savers consider both their ISA allowance and their Personal Savings Allowance before they commit but also be conscious of the rise in interest rates if they have a large pot.

“Flexibility with cash could be key for many savers amid a cost of living crisis, and thankfully, easy access and notice account rates are rising. However, despite consecutive base rate rises, some savers may find their loyalty has not been rewarded, so switching is key. Challenger banks and building societies are offering some of the best rates in this arena, so it’s wise to consider these brands over the more familiar household names. In addition, savers will need to also digest the terms any account may impose, such as withdrawal restrictions.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Savers will find providers have reviewed their table-topping cash interest rates in recent weeks, with notable attention made to fixed rate bonds and ISAs. Since the last inflation announcement, some of the top fixed rate bonds have seen reductions but further adjustments could be set to come. Savers may need to act with pace if they wish to take advantage of the current rates on offer. Inflation is still way above the Government’s target of 2% and it is eroding cash in real terms at its present level, but this should not discourage savers from comparing rates and switching to a better deal.

“Those savers who are prepared to lock their cash away for a year will find the top rate of 4.50% (Ikano Bank) is significantly higher than last year’s top deal, of 1.35% (Union Bank of India (UK) Ltd). Notable improvements have been made to longer-term fixed bonds since last year, but due to the volatility of interest rates over this period, savers who want a guaranteed return may well act on the side of caution and stick to shorter-term bonds. ISA rates are encouragingly on the rise, but there is still a rate gap between the top fixed ISAs and fixed bonds. It is essential savers consider both their ISA allowance and their Personal Savings Allowance before they commit but also be conscious of the rise in interest rates if they have a large pot.

“Flexibility with cash could be key for many savers amid a cost of living crisis, and thankfully, easy access and notice account rates are rising. However, despite consecutive base rate rises, some savers may find their loyalty has not been rewarded, so switching is key. Challenger banks and building societies are offering some of the best rates in this arena, so it’s wise to consider these brands over the more familiar household names. In addition, savers will need to also digest the terms any account may impose, such as withdrawal restrictions.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. 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