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Top savings deals fluctuate as inflation persists

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
15/12/2021

Top savings deals fluctuate as inflation persists

Savers will find a fluctuation in the top rate tables this month, as some fixed bonds have improved, but some fixed ISAs worsened. Inflation has persisted in its impact to erode savers’ cash, but switching quickly remains essential to secure the best deal. The latest analysis from Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 5.1% during November, from 4.2% in October.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 5.1%*.
  • The predicted rate for inflation during Q4 2022 is 3.4%.
  • In December 2020, 496 deals (38 easy access, 40 notice accounts, 40 variable rate ISAs, 118 fixed rate ISAs and 260 fixed rate bonds) could beat 0.3% (November CPI) and in December 2019, 181 deals (145 fixed rate bonds, 30 fixed rate ISAs and six notice accounts) could outpace 1.5% (November CPI)*.

Top savings deals fluctuate as inflation persists

Savers will find a fluctuation in the top rate tables this month, as some fixed bonds have improved, but some fixed ISAs worsened. Inflation has persisted in its impact to erode savers’ cash, but switching quickly remains essential to secure the best deal. The latest analysis from Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 5.1% during November, from 4.2% in October.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 5.1%*.
  • The predicted rate for inflation during Q4 2022 is 3.4%.
  • In December 2020, 496 deals (38 easy access, 40 notice accounts, 40 variable rate ISAs, 118 fixed rate ISAs and 260 fixed rate bonds) could beat 0.3% (November CPI) and in December 2019, 181 deals (145 fixed rate bonds, 30 fixed rate ISAs and six notice accounts) could outpace 1.5% (November CPI)*.

Savings market analysis

Top savings deals at £10,000 gross

18-Dec-19

16-Dec-20

17-Nov-21

Today

Easy access account

Marcus by Goldman Sachs® – 1.44%

ICICI Bank UK – 0.75%

Shawbrook Bank – 0.67%

Investec Bank plc – 0.71%

Notice account

United Trust Bank – 1.75% (200-day)

ICICI Bank UK – 0.85% (95-day)

Secure Trust Bank – 1.10% (120-day)

Secure Trust Bank – 1.10% (120-day)

One-year fixed rate bond

BLME – 1.80%**

Tandem Bank – 0.80%

Union Bank of India (UK) Ltd – 1.35%

Gatehouse Bank – 1.41%**

Two-year fixed rate bond

BLME – 1.95%**

Vernon BS – 1.00%

Gatehouse Bank – 1.60%**

Gatehouse Bank – 1.60%**

Three-year fixed rate bond

BLME – 2.10%**

UBL UK – 1.01% (payable on maturity)

UBL UK – 1.85% (payable on maturity)

UBL UK – 1.85% (payable on maturity)

Four-year fixed rate bond

BLME – 2.10%**

BLME – 1.05%**

Gatehouse Bank – 1.92%**

Gatehouse Bank – 1.92%**

Five-year fixed rate bond

UBL UK – 2.50% (payable on maturity)

UBL UK – 1.28% (payable on maturity)

UBL UK – 2.14% (payable on maturity)

UBL UK – 2.14% (payable on maturity)

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

 

ISA market analysis

Top savings deals at £10,000 gross

18-Dec-19

16-Dec-20

17-Nov-21

Today

Easy access ISA

Al Rayan Bank – 1.35%**

Al Rayan Bank – 0.60%**

Shawbrook Bank – 0.0.67%

Shawbrook Bank – 0.67%

Notice ISA

Aldermore – 1.30% (30-day)

Chorley Building Society – 0.60% (90-day)

Aldermore – 0.55% (30-day)

Aldermore – 0.55% (30-day)

One-year fixed rate ISA

Charter Savings Bank – 1.41%

Al Rayan Bank – 0.65%**

West Brom BS – 1.00%

Shawbrook Bank – 0.93%

Two-year fixed rate ISA

Metro Bank – 1.60%

Monmouthshire BS – 0.80%

West Brom BS – 1.25%

 West Brom BS – 1.20%

Three-year fixed rate ISA

Aldermore – 1.70%

UBL UK – 0.76% (on maturity)

West Brom BS – 1.50%

West Brom BS – 1.40%

Four-year fixed rate ISA

Hodge Bank – 1.55%

Hodge Bank – 0.65%

UBL UK – 1.39% (payable on maturity)

UBL UK – 1.39% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 2.11% (on maturity)

UBL UK – 1.18% (on maturity)

West Brom BS – 2.00%

West Brom BS – 1.75%

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

 

Savings market analysis

Top savings deals at £10,000 gross

18-Dec-19

16-Dec-20

17-Nov-21

Today

Easy access account

Marcus by Goldman Sachs® – 1.44%

ICICI Bank UK – 0.75%

Shawbrook Bank – 0.67%

Investec Bank plc – 0.71%

Notice account

United Trust Bank – 1.75% (200-day)

ICICI Bank UK – 0.85% (95-day)

Secure Trust Bank – 1.10% (120-day)

Secure Trust Bank – 1.10% (120-day)

One-year fixed rate bond

BLME – 1.80%**

Tandem Bank – 0.80%

Union Bank of India (UK) Ltd – 1.35%

Gatehouse Bank – 1.41%**

Two-year fixed rate bond

BLME – 1.95%**

Vernon BS – 1.00%

Gatehouse Bank – 1.60%**

Gatehouse Bank – 1.60%**

Three-year fixed rate bond

BLME – 2.10%**

UBL UK – 1.01% (payable on maturity)

UBL UK – 1.85% (payable on maturity)

UBL UK – 1.85% (payable on maturity)

Four-year fixed rate bond

BLME – 2.10%**

BLME – 1.05%**

Gatehouse Bank – 1.92%**

Gatehouse Bank – 1.92%**

Five-year fixed rate bond

UBL UK – 2.50% (payable on maturity)

UBL UK – 1.28% (payable on maturity)

UBL UK – 2.14% (payable on maturity)

UBL UK – 2.14% (payable on maturity)

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

 

ISA market analysis

Top savings deals at £10,000 gross

18-Dec-19

16-Dec-20

17-Nov-21

Today

Easy access ISA

Al Rayan Bank – 1.35%**

Al Rayan Bank – 0.60%**

Shawbrook Bank – 0.0.67%

Shawbrook Bank – 0.67%

Notice ISA

Aldermore – 1.30% (30-day)

Chorley Building Society – 0.60% (90-day)

Aldermore – 0.55% (30-day)

Aldermore – 0.55% (30-day)

One-year fixed rate ISA

Charter Savings Bank – 1.41%

Al Rayan Bank – 0.65%**

West Brom BS – 1.00%

Shawbrook Bank – 0.93%

Two-year fixed rate ISA

Metro Bank – 1.60%

Monmouthshire BS – 0.80%

West Brom BS – 1.25%

 West Brom BS – 1.20%

Three-year fixed rate ISA

Aldermore – 1.70%

UBL UK – 0.76% (on maturity)

West Brom BS – 1.50%

West Brom BS – 1.40%

Four-year fixed rate ISA

Hodge Bank – 1.55%

Hodge Bank – 0.65%

UBL UK – 1.39% (payable on maturity)

UBL UK – 1.39% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 2.11% (on maturity)

UBL UK – 1.18% (on maturity)

West Brom BS – 2.00%

West Brom BS – 1.75%

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

 

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

“Inflation continues to take its toll on savers’ cash and may well do so for many months to come. Since the last inflation announcement, some of the top fixed rate bonds have improved, but elsewhere some fixed rate ISAs have worsened. These fluctuations reiterate the importance for savers to keep a close eye on the changing market and switch quickly to take advantage of a top rate. The murmurings of a base rate rise have quietened down since last month, but as inflation continues to rise, it’s only a matter of time before the Bank of England makes a move.

“Savers who prefer to keep their cash in a flexible account would have seen Aldermore paying a top rate of 0.75% on its Double Access Account withdrawn last week, which was the best top rate deal since the start of the year. Now the top rate is on the Online Flexi Saver from Investec Bank plc which pays 0.71% and unlike the Aldermore deal, this account does not restrict withdrawals.

“One area of the savings market to worsen since the last inflation announcement is the ISA arena, as the top rates across the one, two, three-and five-year categories are now paying less. There also remains a stark difference between the rates on deals outside and inside a tax-free wrapper. The top one-year bond now pays 1.41% as an expected profit rate from Gatehouse Bank, compared to 0.93% as interest for the ISA equivalent from Shawbrook Bank. Those looking at a five-year fixed deal can get 2.14% on a fixed bond from UBL UK, but only 1.75% as a top ISA rate from West Brom Building Society. If savers are comparing bonds and ISAs, then it’s vital they consider their Personal Savings Allowance foremost.

“Challenger banks and building societies continue to dominate the top rate tables and it is clear to see why savers need to act quickly to take advantage. Signing up to rate alerts and newsletters is wise as some deals don’t appear to have a lengthy shelf life.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (no notice/easy access, notice, fixed rate bonds, variable or fixed ISAs) and excludes 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:

“Inflation continues to take its toll on savers’ cash and may well do so for many months to come. Since the last inflation announcement, some of the top fixed rate bonds have improved, but elsewhere some fixed rate ISAs have worsened. These fluctuations reiterate the importance for savers to keep a close eye on the changing market and switch quickly to take advantage of a top rate. The murmurings of a base rate rise have quietened down since last month, but as inflation continues to rise, it’s only a matter of time before the Bank of England makes a move.

“Savers who prefer to keep their cash in a flexible account would have seen Aldermore paying a top rate of 0.75% on its Double Access Account withdrawn last week, which was the best top rate deal since the start of the year. Now the top rate is on the Online Flexi Saver from Investec Bank plc which pays 0.71% and unlike the Aldermore deal, this account does not restrict withdrawals.

“One area of the savings market to worsen since the last inflation announcement is the ISA arena, as the top rates across the one, two, three-and five-year categories are now paying less. There also remains a stark difference between the rates on deals outside and inside a tax-free wrapper. The top one-year bond now pays 1.41% as an expected profit rate from Gatehouse Bank, compared to 0.93% as interest for the ISA equivalent from Shawbrook Bank. Those looking at a five-year fixed deal can get 2.14% on a fixed bond from UBL UK, but only 1.75% as a top ISA rate from West Brom Building Society. If savers are comparing bonds and ISAs, then it’s vital they consider their Personal Savings Allowance foremost.

“Challenger banks and building societies continue to dominate the top rate tables and it is clear to see why savers need to act quickly to take advantage. Signing up to rate alerts and newsletters is wise as some deals don’t appear to have a lengthy shelf life.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (no notice/easy access, notice, fixed rate bonds, variable or fixed ISAs) and excludes 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.

 

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Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert