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).
| 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.”
