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Savers need to act with pace to catch the best rates

by LLP Editor
16th Jun 21 12:33 pm

Savers would be wise to act quickly to acquire an account with a top rate due to their short shelf life, with some market-leading rates cut in just a few weeks. The inflation announcement today means that not one standard savings account can beat its eroding power. 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 2.1% during May, from 1.5% in April.
  • The number of deals able to outpace inflation has not changed since last month, there is not one standard savings account that can outpace 2.1%.
  • The predicted rate for inflation during Q2 2022 is 2.3%.
  • In June 2020, 440 deals (35 easy access, 38 notice accounts, 31 variable rate ISAs, 96 fixed rate ISAs and 240 fixed rate bonds) could beat 0.5% (May CPI) and in June 2019, 104 deals (98 fixed rate bonds and six fixed rate ISAs) could outpace 2.4% (May CPI).

 

Savings market analysis
Top savings deals at £10,000 gross 19-Jun-19 17-Jun-20 19-May-21 Today
Easy access account Virgin Money – 1.50% National Savings & Investments – 1.15% Atom Bank – 0.50% Atom Bank – 0.50%
Notice account Secure Trust Bank – 1.91% (90-day) ICICI Bank UK – 1.39% (95-day) Charter Savings Bank – 0.67% (120-day) Shawbrook Bank – 0.72% (120-day)
One-year fixed rate bond BLME – 2.20%** Al Rayan Bank – 1.20%** Atom Bank – 0.85% Gatehouse Bank – 0.91%**
Two-year fixed rate bond Al Rayan Bank – 2.40%** Al Rayan Bank – 1.40%** Zopa – 0.89% UBL UK – 1.12% (payable on maturity)
Three-year fixed rate bond Gatehouse Bank – 2.55%** Al Rayan Bank – 1.50%** Zopa – 1.00% Cynergy Bank – 1.25%
Four-year fixed rate bond BLME – 2.50%** BLME – 1.55%** Zopa – 1.04% Zopa – 1.19%
Five-year fixed rate bond Gatehouse Bank – 2.75%** BLME – 1.60%** Gatehouse Bank – 1.40%** UBL UK – 1.60% (payable on maturity)
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Source: Moneyfacts.co.uk

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