Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Top fixed rates pay twice as much as a year ago

Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo
Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
20/07/2022

Top fixed rates pay twice as much as a year ago

Top savings deals are thriving with some fixed rates more than doubling since a year ago, but inflation continues to outpace cash interest returns. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

Top fixed rates pay twice as much as a year ago

Top savings deals are thriving with some fixed rates more than doubling since a year ago, but inflation continues to outpace cash interest returns. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 9.4% during June, from 9.1% in May.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.4%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In July 2021, there were no deals that could beat 2.5% (June 2021 CPI) and in July 2020, there were 306 deals (16 easy access, 19 notice accounts, 12 variable rate ISAs, 69 fixed rate ISAs and 190 fixed rate bonds) that could beat 0.6% (June 2020 CPI)*.
  • The Consumer Price Index (CPI) rose to 9.4% during June, from 9.1% in May.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.4%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In July 2021, there were no deals that could beat 2.5% (June 2021 CPI) and in July 2020, there were 306 deals (16 easy access, 19 notice accounts, 12 variable rate ISAs, 69 fixed rate ISAs and 190 fixed rate bonds) that could beat 0.6% (June 2020 CPI)*.

 

Savings market analysis

Top savings deals at £10,000 gross

15-Jul-20

14-Jul-21

22-Jun-22

Today

Easy access account

National Savings & Investments – 1.15%

ICICI Bank UK – 0.50%

Virgin Money – 1.55%***

Al Rayan Bank – 1.60%**

Notice account

ICICI Bank UK – 1.39% (95-day)

OakNorth Bank – 0.76% (120-day)

Oxbury Bank – 1.95% (180-day)

OakNorth Bank – 2.05% (120-day)

One-year fixed rate bond

Allica Bank– 1.05%

Gatehouse Bank – 1.10%**

Atom Bank – 2.60%

Tandem Bank – 2.75%

Two-year fixed rate bond

BLME – 1.35%**

JN Bank – 1.21%

BLME – 3.00%**

Gatehouse Bank – 3.10%**

Three-year fixed rate bond

BLME – 1.40%**

UBL UK – 1.33% (payable on maturity)

BLME – 3.05%**

Aldermore – 3.15%

Four-year fixed rate bond

BLME – 1.45%**

JN Bank – 1.45%

BLME – 3.10%**

Aldermore – 3.20%

Five-year fixed rate bond

BLME – 1.50%**

UBL UK – 1.72% (payable on maturity)

BLME – 3.25%**

PCF Bank – 3.45%

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

15-Jul-20

14-Jul-21

22-Jun-22

Today

Easy access ISA

National Savings & Investments – 0.90%

Marcus by Goldman Sachs® - 0.50%

Paragon Bank – 1.35%

Cynergy Bank – 1.40%

Notice ISA

Teachers BS – 0.70% (90-day)

Aldermore – 0.35% (30-day)

Aldermore – 1.40% (30-day)

Aldermore – 1.40% (30-day)

One-year fixed rate ISA

Leek United BS – 0.75%

OakNorth Bank – 0.72%

Virgin Money – 2.06%

Secure Trust Bank – 2.15%

Two-year fixed rate ISA

Gatehouse Bank – 0.95%**

OakNorth Bank – 0.86%

Virgin Money – 2.36%

Virgin Money – 2.56%

Three-year fixed rate ISA

UBL UK – 1.11% (payable on maturity)

UBL UK – 1.07% (payable on maturity)

Leeds BS – 2.75%

Aldermore – 2.75%

Four-year fixed rate ISA

Hodge Bank – 0.85%

Hodge Bank – 0.65%

UBL UK – 2.44% (payable on maturity)

Gatehouse Bank – 2.45%**

Five-year fixed rate ISA

UBL UK – 1.24% (payable on maturity)

UBL UK – 1.34% (payable on maturity)

UBL UK – 2.74% (payable on maturity)

UBL UK – 2.74% (payable on maturity)

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

 

Savings market analysis

Top savings deals at £10,000 gross

15-Jul-20

14-Jul-21

22-Jun-22

Today

Easy access account

National Savings & Investments – 1.15%

ICICI Bank UK – 0.50%

Virgin Money – 1.55%***

Al Rayan Bank – 1.60%**

Notice account

ICICI Bank UK – 1.39% (95-day)

OakNorth Bank – 0.76% (120-day)

Oxbury Bank – 1.95% (180-day)

OakNorth Bank – 2.05% (120-day)

One-year fixed rate bond

Allica Bank– 1.05%

Gatehouse Bank – 1.10%**

Atom Bank – 2.60%

Tandem Bank – 2.75%

Two-year fixed rate bond

BLME – 1.35%**

JN Bank – 1.21%

BLME – 3.00%**

Gatehouse Bank – 3.10%**

Three-year fixed rate bond

BLME – 1.40%**

UBL UK – 1.33% (payable on maturity)

BLME – 3.05%**

Aldermore – 3.15%

Four-year fixed rate bond

BLME – 1.45%**

JN Bank – 1.45%

BLME – 3.10%**

Aldermore – 3.20%

Five-year fixed rate bond

BLME – 1.50%**

UBL UK – 1.72% (payable on maturity)

BLME – 3.25%**

PCF Bank – 3.45%

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

15-Jul-20

14-Jul-21

22-Jun-22

Today

Easy access ISA

National Savings & Investments – 0.90%

Marcus by Goldman Sachs® - 0.50%

Paragon Bank – 1.35%

Cynergy Bank – 1.40%

Notice ISA

Teachers BS – 0.70% (90-day)

Aldermore – 0.35% (30-day)

Aldermore – 1.40% (30-day)

Aldermore – 1.40% (30-day)

One-year fixed rate ISA

Leek United BS – 0.75%

OakNorth Bank – 0.72%

Virgin Money – 2.06%

Secure Trust Bank – 2.15%

Two-year fixed rate ISA

Gatehouse Bank – 0.95%**

OakNorth Bank – 0.86%

Virgin Money – 2.36%

Virgin Money – 2.56%

Three-year fixed rate ISA

UBL UK – 1.11% (payable on maturity)

UBL UK – 1.07% (payable on maturity)

Leeds BS – 2.75%

Aldermore – 2.75%

Four-year fixed rate ISA

Hodge Bank – 0.85%

Hodge Bank – 0.65%

UBL UK – 2.44% (payable on maturity)

Gatehouse Bank – 2.45%**

Five-year fixed rate ISA

UBL UK – 1.24% (payable on maturity)

UBL UK – 1.34% (payable on maturity)

UBL UK – 2.74% (payable on maturity)

UBL UK – 2.74% (payable on maturity)

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

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

“Interest rates on savings accounts fell to record lows last year, so seeing such vast improvements across the top rate tables since then is reassuring. However, inflation is dampening progress as not one standard savings account can outpace its current level. One area of the savings market to see notable volatility is one-year fixed rate bonds, and savers will find the top rate deal (2.75%) pays more than double that of the top deal a year ago (1.10%). Fixed bonds and fixed ISAs overall are seeing improvements across all terms, and this competition has been predominantly fuelled by challenger banks jostling for a prominent position to entice savers’ deposits.

“Savers will find they can earn three times the return on the top easy access account right now (1.60%), compared to the best deal a year ago (0.50%), which is great news for those looking for a flexible pot to store their hard-earned cash. While this is positive, the stark reality is that inflation is eroding the real spending power of consumers’ cash and is expected to remain at a high level for some time. Indeed, the Bank of England predicts inflation to be around 6.6% during Q2 2023, so while this is less than the current level, it’s still considerably higher than the 2% target.

“As interest rates continue to rise, it’s uncertain whether savers would be content to lock their cash away for more than a year, particularly if they feel more improvements could surface or if they need the reassurance of dipping into their savings pot. Spreading cash across both easy access accounts and short-term fixed to secure a guaranteed return could be a wise move to get the best of both worlds. However, savers who are comparing easy access accounts must be mindful that not all of them allow unlimited withdrawals and, in some cases, heavy bonuses can apply for just 12 months – so it’s wise to make a note to switch before they expire.

“The five back-to-back Bank of England base rate rises may not be passed on in full to savings customers, so it’s vital they compare deals and switch if they are not being rewarded for their loyalty. As it stands, savers will find some of the best rates from the more unfamiliar brands, and so long as they have the same protections in place as a well-known bank, there is little reason to overlook them.”

*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:

“Interest rates on savings accounts fell to record lows last year, so seeing such vast improvements across the top rate tables since then is reassuring. However, inflation is dampening progress as not one standard savings account can outpace its current level. One area of the savings market to see notable volatility is one-year fixed rate bonds, and savers will find the top rate deal (2.75%) pays more than double that of the top deal a year ago (1.10%). Fixed bonds and fixed ISAs overall are seeing improvements across all terms, and this competition has been predominantly fuelled by challenger banks jostling for a prominent position to entice savers’ deposits.

“Savers will find they can earn three times the return on the top easy access account right now (1.60%), compared to the best deal a year ago (0.50%), which is great news for those looking for a flexible pot to store their hard-earned cash. While this is positive, the stark reality is that inflation is eroding the real spending power of consumers’ cash and is expected to remain at a high level for some time. Indeed, the Bank of England predicts inflation to be around 6.6% during Q2 2023, so while this is less than the current level, it’s still considerably higher than the 2% target.

“As interest rates continue to rise, it’s uncertain whether savers would be content to lock their cash away for more than a year, particularly if they feel more improvements could surface or if they need the reassurance of dipping into their savings pot. Spreading cash across both easy access accounts and short-term fixed to secure a guaranteed return could be a wise move to get the best of both worlds. However, savers who are comparing easy access accounts must be mindful that not all of them allow unlimited withdrawals and, in some cases, heavy bonuses can apply for just 12 months – so it’s wise to make a note to switch before they expire.

“The five back-to-back Bank of England base rate rises may not be passed on in full to savings customers, so it’s vital they compare deals and switch if they are not being rewarded for their loyalty. As it stands, savers will find some of the best rates from the more unfamiliar brands, and so long as they have the same protections in place as a well-known bank, there is little reason to overlook them.”

*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 30 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.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.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 Moneyfacts.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 30 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.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.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 Moneyfacts.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.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert