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Top fixed savings rates cut and inflation eases

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James Hyde, Press & PR Manager
James Hyde, Press & PR Manager T: 01603 476205 E: Email James
20/12/2023

Top fixed savings rates cut and inflation eases

Some top fixed bond rates have reduced since the last inflation announcement, reaffirming the need for savers to act quickly. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Top fixed savings rates cut and inflation eases

Some top fixed bond rates have reduced since the last inflation announcement, reaffirming the need for savers to act quickly. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

  • The Consumer Price Index (CPI) fell to 3.9% during November, from 4.6% in October.
  • There are currently 1127 savings accounts that beat inflation* (109 easy access, 135 notice accounts, 84 variable rate ISAs, 246 fixed rate ISAs and 553 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 3.1%.
  • In December 2022, there were no deals that could beat 10.7% (November 2022 CPI) and in December 2021, there were no deals that could beat 5.1% (November 2021 CPI).

 

  • The Consumer Price Index (CPI) fell to 3.9% during November, from 4.6% in October.
  • There are currently 1127 savings accounts that beat inflation* (109 easy access, 135 notice accounts, 84 variable rate ISAs, 246 fixed rate ISAs and 553 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 3.1%.
  • In December 2022, there were no deals that could beat 10.7% (November 2022 CPI) and in December 2021, there were no deals that could beat 5.1% (November 2021 CPI).

 

Savings market analysis

Top savings deals at £10,000 gross

15-Dec-21

14-Dec-22

16-Nov-23

Today

Easy access account

Investec Bank plc – 0.71%

HSBC – 2.96%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Secure Trust Bank – 1.10% (120-day)

Marsden BS – 3.85% (180-day)

Shawbrook Bank – 5.56% (120-day)

Hampshire Trust Bank – 5.51% (95-day)

One-year fixed rate bond

Gatehouse Bank – 1.41%**

SmartSave – 4.32%

Metro Bank – 5.91%

Metro Bank – 5.66%

Two-year fixed rate bond

Gatehouse Bank – 1.60%**

Melton BS – 4.75%

JN Bank – 5.80%

Union Bank of India (UK) Ltd –5.40%

Three-year fixed rate bond

UBL UK – 1.85% (payable on maturity)

Sensible Savings – 4.70%

JN Bank – 5.90%

Hanley Economic BS –5.35%

Four-year fixed rate bond

Gatehouse Bank – 1.92%**

Gatehouse Bank – 4.65%**

JN Bank – 5.60%

UBL UK – 4.93% (payable on maturity)

Five-year fixed rate bond

UBL UK – 2.14% (payable on maturity)

Melton BS – 4.90%

JN Bank – 5.60%

UBL UK – 5.30% (payable on maturity)

**Islamic bank, pays an expected profit rate. 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

15-Dec-21

14-Dec-22

16-Nov-23

Today

Easy access ISA

Shawbrook Bank – 0.67%

Virgin Money – 3.00%

Gatehouse Bank – 5.15%**

Metro Bank – 5.11%

Notice ISA

Aldermore – 0.55% (30-day)

Mansfield BS – 3.00% (180-day)

Mansfield BS – 5.30% (180-day)

Mansfield BS – 5.30% (180-day)

One-year fixed rate ISA

Shawbrook Bank – 0.93%

Nottinghamshire BS –  3.85%

Virgin Money – 5.85%

 Metro Bank – 5.41%

Two-year fixed rate ISA

 West Brom BS – 1.20%

State Bank of India – 4.65%

UBL UK – 5.55% (payable on maturity)

UBL UK – 5.13% (payable on maturity)

Three-year fixed rate ISA

West Brom BS – 1.40%

State Bank of India – 4.65%

Castle Trust Bank – 5.15%

UBL UK – 5.11% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.39% (payable on maturity)

Gatehouse Bank – 4.20%**

UBL UK – 4.93% (payable on maturity)

UBL UK – 4.93% (payable on maturity)

Five-year fixed rate ISA

West Brom BS – 1.75%

State Bank of India – 4.65%

UBL UK – 5.04% (payable on maturity)

UBL UK – 5.30% (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

15-Dec-21

14-Dec-22

16-Nov-23

Today

Easy access account

Investec Bank plc – 0.71%

HSBC – 2.96%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Secure Trust Bank – 1.10% (120-day)

Marsden BS – 3.85% (180-day)

Shawbrook Bank – 5.56% (120-day)

Hampshire Trust Bank – 5.51% (95-day)

One-year fixed rate bond

Gatehouse Bank – 1.41%**

SmartSave – 4.32%

Metro Bank – 5.91%

Metro Bank – 5.66%

Two-year fixed rate bond

Gatehouse Bank – 1.60%**

Melton BS – 4.75%

JN Bank – 5.80%

Union Bank of India (UK) Ltd –5.40%

Three-year fixed rate bond

UBL UK – 1.85% (payable on maturity)

Sensible Savings – 4.70%

JN Bank – 5.90%

Hanley Economic BS –5.35%

Four-year fixed rate bond

Gatehouse Bank – 1.92%**

Gatehouse Bank – 4.65%**

JN Bank – 5.60%

UBL UK – 4.93% (payable on maturity)

Five-year fixed rate bond

UBL UK – 2.14% (payable on maturity)

Melton BS – 4.90%

JN Bank – 5.60%

UBL UK – 5.30% (payable on maturity)

**Islamic bank, pays an expected profit rate. 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

15-Dec-21

14-Dec-22

16-Nov-23

Today

Easy access ISA

Shawbrook Bank – 0.67%

Virgin Money – 3.00%

Gatehouse Bank – 5.15%**

Metro Bank – 5.11%

Notice ISA

Aldermore – 0.55% (30-day)

Mansfield BS – 3.00% (180-day)

Mansfield BS – 5.30% (180-day)

Mansfield BS – 5.30% (180-day)

One-year fixed rate ISA

Shawbrook Bank – 0.93%

Nottinghamshire BS –  3.85%

Virgin Money – 5.85%

 Metro Bank – 5.41%

Two-year fixed rate ISA

 West Brom BS – 1.20%

State Bank of India – 4.65%

UBL UK – 5.55% (payable on maturity)

UBL UK – 5.13% (payable on maturity)

Three-year fixed rate ISA

West Brom BS – 1.40%

State Bank of India – 4.65%

Castle Trust Bank – 5.15%

UBL UK – 5.11% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.39% (payable on maturity)

Gatehouse Bank – 4.20%**

UBL UK – 4.93% (payable on maturity)

UBL UK – 4.93% (payable on maturity)

Five-year fixed rate ISA

West Brom BS – 1.75%

State Bank of India – 4.65%

UBL UK – 5.04% (payable on maturity)

UBL UK – 5.30% (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

 

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“Last month saw the return of inflation-beating savings accounts after two years, and this latest drop in inflation means there are significantly more available now.

Challenger banks continue to dominate the top positions in the charts, with many offering enticing rates to raise capital in a competitive market. However, their readiness to pull popular products once funding targets have been reached can lead to a great deal of variation, and it’s vital that consumers strike while the iron is hot to secure the most favourable deal.

“Many flexible accounts from big banks remain well below the market average, which offers a clear incentive for savers to search for switching opportunities. Savers must research prospective new accounts carefully, however, as terms, incentives and accessibility may differ. It remains a worthwhile exercise to consider splitting investments across easy access accounts and fixed bonds. There are also notice accounts to consider, though the best 30-day notice rates currently sit below the best easy access rates.

“As we reach the latter days of the year, some may have less disposable income than usual, but there remain some enticing opportunities available for those who wish to explore 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, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“Last month saw the return of inflation-beating savings accounts after two years, and this latest drop in inflation means there are significantly more available now.

Challenger banks continue to dominate the top positions in the charts, with many offering enticing rates to raise capital in a competitive market. However, their readiness to pull popular products once funding targets have been reached can lead to a great deal of variation, and it’s vital that consumers strike while the iron is hot to secure the most favourable deal.

“Many flexible accounts from big banks remain well below the market average, which offers a clear incentive for savers to search for switching opportunities. Savers must research prospective new accounts carefully, however, as terms, incentives and accessibility may differ. It remains a worthwhile exercise to consider splitting investments across easy access accounts and fixed bonds. There are also notice accounts to consider, though the best 30-day notice rates currently sit below the best easy access rates.

“As we reach the latter days of the year, some may have less disposable income than usual, but there remain some enticing opportunities available for those who wish to explore 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, 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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James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant