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 4.6% during October, from 6.7% in September.
- Due to a fall in CPI to 4.6%, there are now some standard savings accounts that beat inflation* (56 easy access, 86 notice accounts, 46 variable rate ISAs, 215 fixed rate ISAs and 489 fixed rate bonds) for the first time in over two years (May 2021).
- The Bank of England’s modal projection rate for inflation during Q4 2024 is 3.1%.
- In November 2022, there were no deals that could beat 11.1% (October 2022 CPI) and in November 2021, there were no deals that could beat 4.2% (October 2021 CPI).
| Savings market analysis | ||||
| Top savings deals at £10,000 gross | 17-Nov-21 | 16-Nov-22 | 18-Oct-23 | Today |
| Easy access account | Shawbrook Bank – 0.67% | HSBC – 2.96% | Chorley BS – 5.30% | Ulster Bank – 5.20% |
| Notice account | Secure Trust Bank – 1.10% (120-day) | OakNorth Bank – 3.15% (120-day) | RCI Bank UK – 5.60% (95-day) | Shawbrook Bank – 5.56% (120-day) |
| One-year fixed rate bond | Union Bank of India (UK) Ltd – 1.35% | Ikano Bank – 4.50% | Union Bank of India (UK) Ltd – 6.11% | Metro Bank – 5.91% |
| Two-year fixed rate bond | Gatehouse Bank – 1.60%** | RCI Bank UK – 4.85% | Union Bank of India (UK) Ltd – 6.05% | JN Bank – 5.80% |
| Three-year fixed rate bond | UBL UK – 1.85% (payable on maturity) | Tandem Bank – 4.90% | JN Bank – 5.97% | JN Bank – 5.90% |
| Four-year fixed rate bond | Gatehouse Bank – 1.92%** | RCI Bank UK – 4.90% | JN Bank – 5.80% | JN Bank – 5.60% |
| Five-year fixed rate bond | UBL UK – 2.14% (payable on maturity) | Tandem Bank – 5.00% | JN Bank – 5.80% | JN Bank – 5.60% |
| 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 | 17-Nov-21 | 16-Nov-22 | 18-Oct-23 | Today |
| Easy access ISA | Shawbrook Bank – 0.67% | Virgin Money – 3.00% | Chorley BS – 5.15% | Gatehouse Bank – 5.15%** |
| Notice ISA | Aldermore – 0.55% (30-day) | Aldermore – 2.80% (30-day) | Stafford Railway BS – 5.25% (60-day) | Mansfield BS – 5.30% (180-day) |
| One-year fixed rate ISA | West Brom BS – 1.00% | Kent Reliance – 3.95% | Virgin Money – 5.85% | Virgin Money – 5.85% |
| Two-year fixed rate ISA | West Brom BS – 1.25% | State Bank of India – 4.65% | UBL UK – 5.76% (payable on maturity) | UBL UK – 5.55% (payable on maturity) |
| Three-year fixed rate ISA | West Brom BS – 1.50% | State Bank of India – 4.65% | Zopa – 5.37% | Castle Trust Bank – 5.15% |
| Four-year fixed rate ISA | UBL UK – 1.38% (payable on maturity) | Gatehouse Bank – 4.20%** | UBL UK – 5.39% (payable on maturity) | UBL UK – 4.93% (payable on maturity) |
| Five-year fixed rate ISA | West Brom BS – 2.00% | State Bank of India – 4.65% | UBL UK – 5.54% (payable on maturity) | UBL UK – 5.04% (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 | ||||
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“It has taken over two years, but finally inflation has fallen to a level where there are now some standard savings accounts that can outpace its eroding prowess. The savings market has felt a few rate cuts since last month’s inflation announcement, with fixed rate bonds under the spotlight. Savers will no longer find a bond that pays more than 6%, but it is worth noting that challenger banks are still holding the top spots despite shuffling positions. These institutions can launch enticing offers to attract deposits for their future lending, but they also act quickly to pull offers when they become fully subscribed. Consumers will need to act quickly to grab the top deals on offer and consider the more unfamiliar brands when comparing deals.
The incentive to switch remains for those savers with flexible pots, as many of the top rate deals that pay 5% or more for new customers do not come from the biggest high street bank brands. It’s simple and easy to switch, but savers must check the terms of any new account carefully, such as those with withdrawal restrictions or introductory bonus rates. To take full advantage of the best deals, it’s worth spreading any investment across easy access accounts and fixed bonds, but there are also notice accounts to consider which currently pay competitive rates.
Cash ISAs are still offering attractive rates, but there remains a rate gap between the top fixed rate bond and fixed rate ISAs. There are not as many brands operating accounts under an ISA wrapper, so savers must be sure to consider these deals carefully while also being conscious of any Personal Savings Allowance (PSA) they have. As we edge closer to the end of the year, consumers may well be thinking about spending rather than saving, but it’s still a good time to set up a nest egg to fall back on, just in case.”
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.
