Best savings accounts this week as interest rate increases 'stir up' top rate tables

She said the fluctuation of savings rates should encourage customers to review and switch their account if they aren't currently being rewarded for their loyalty.

Fixed-rate savings accounts

On fixed-rate savings accounts, Springall said: “Leading the one-year fixed bond market this week is Al Rayan Bank, after an increase to its expected product rate to 5.20 per cent AER, which also grabs a place in the top rate tables for its two- and three-year fixed rate bonds paying 4.92 per cent and 4.70 per cent AER respectively, but they are not market-leading.

“Those savers who want to fix their cash for longer will find new accounts entering the two-year fixed bond market this week from Birmingham Bank and Close Brothers Savings which pay 4.97 per cent and 4.95 per cent respectively, just shy of the market-leading two-year bond from RCI Bank UK which pays 5.05 per cent AER."

Best one-year fixed savings accounts:

• Al Rayan Bank 5.20 per cent AER/5.11 per cent gross
• Habib Bank Zurich plc 5.18 per cent AER/gross
• SmartSave 5.18 per cent AER/gross
• Close Brothers Savings 5.16 per cent AER/gross
• Atom Bank 5.15 per cent AER/gross
• Zenith Bank (UK) LTD 5.15 per cent AER/gross
• FCMB Bank (UK) 5.12 per cent AER/gross
• Beehive Money 5.10 per cent AER/gross
• Hodge Bank 5.10 per cent AER/gross

Best two-year fixed savings account

• RCI Bank UK 5.05 per cent AER/gross
• Birmingham Bank 4.97 per cent AER/gross
• Atom Bank 4.95 per cent AER/gross
• Beehive Money 4.95 per cent AER/gross
• Union Bank of India (UK) Ltd 4.95 per cent AER/gross - £1,000 minimum investment
• Union Bank of India (UK) Ltd 4.95 per cent AER/gross - £5,000 minimum investment
• Close Brothers Savings 4.95 per cent AER/gross
• Hodge Bank 4.94 per cent AER/gross
• Al Rayan Bank 4.92 per cent AER/4.84 per cent gross
• Zenith Bank (UK) Ltd 4.90 per cent AER/gross

Cash ISAs

There have also been some "reasonable" improvements to cash ISA rates over the past week, with United Trust Bank (4.73 per cent AER), Charter Savings Bank (4.71 per cent AER) and Kent Reliance (4.70 per cent AER) all increasing their rates on their one-year fixed Cash ISAs.

However, all three of these accounts pay less than five per cent, whereas the market leader for this type of account is Virgin Money, paying 5.05 per cent AER.

Springall added: “Those looking to fix in a Cash ISA for longer will find Aldermore improving its two- and three-year fixed ISAs this week, which now pay 4.55 per cent and 4.25 per cent AER, respectively.

"Not to go unnoticed, Nottingham Building Society upped the rate on its three-year fixed Cash ISA rate to 4.25 per cent AER. However, the market-leading rate on a two-year fixed Cash ISA comes from State Bank of India at 4.65 per cent AER, which is more than the market-leading three-year fixed Cash ISA of 4.41 per cent AER from Shawbrook Bank."

Best one year fixed rate cash ISAs:

• Virgin Money 5.05 per cent AER/gross
• Punjab National Bank (International) Limited 4.80 per cent AER/gross
• United Trust Bank 4.73 per cent AER/gross
• OakNorth Bank 4.72 per cent AER/4.62 per cent gross
• Shawbrook Bank 4.72 per cent AER/gross
• Paragon Bank 4.71 per cent AER/gross
• Charter Savings Bank 4.71 per cent AER/gross
• Cynergy Bank 4.70 per cent AER/gross
• Kent Reliance 4.70 per cent AER/gross
• Tipton & Coseley Building Society 4.70 per cent AER/gross

Best variable rate cash ISAs:

• Plum 5.17 per cent AER/5.06 per cent gross
• Chip 5.10 per cent AER/4.99 per cent gross
• West Brom Building Society 5.10 per cent AER/5.10 per cent gross
• Zopa 5.08 per cent AER/4.96 per cent gross
• Furness Building Society 5.01 per cent AER/gross
• Newcastle Building Society 5.00 per cent AER/gross
• Earl Shilton Building Society 5.00 per cent AER/gross
• Teachers Building Society 5.00 per cent AER/gross
• Paragon Bank 4.95 per cent AER/gross
• Charter Savings Bank 4.87 per cent AER/gross

Easy access savings accounts

“Savers who want some flexibility with their cash will find little movement in the easy access market, with Cynergy Bank (4.93 per cent AER) and Principality Building Society (4.60 per cent AER) reducing their rates this week," Springall said.

"The leading easy access rate comes from Ulster Bank and cahoot, both pay 5.20 per cent AER. However, we did see Paragon Bank re-launch its account back onto the market, which pays 5.05 per cent AER."

• Cynergy Bank 4.93 per cent AER/gross
  
• Tesco Bank 4.81 per cent AER/gross
• Marcus by Goldman Sachs® 4.75 per cent AER/4.65 per cent gross
• SAGA4.75 per cent AER/4.65 per cent gross
• Post Office Money® 4.75 per cent AER/gross
• Principality Building Society 4.75 per cent AER/gross
• Principality Building Society 4.60 per cent AER/gross
• Sainsbury's Bank 4.40 per cent AER/gross
• Post Office Money®4.10 per cent AER/gross
• TSB 2.92 per cent AER/2.89 per cent gross

Best easy access savings accounts without bonus:

• cahoot 5.20 per cent AER/gross
• Ulster Bank 5.20 per cent AER/gross
• Paragon Bank 5.05 per cent AER/gross
• Oxbury Bank 5.02 per cent AER/4.91 per cent gross
• Monument Bank 5.01 per cent AER/4.90 per cent gross
• Close Brothers Savings 5.00 per cent AER/gross
• Paragon Bank 5.00 per cent AER/4.89 per cent gross
• Kent Reliance 4.96 per cent AER/gross
• Oxbury Bank 4.94 per cent AER/4.83 per cent gross
• Charter Savings Bank 4.93 per cent AER/gross

Notice savings accounts

“If savers are happy to give notice to access funds, then they will find Monument Bank re-entering the top rate tables after re-launching its 45-day notice account which pays 5.20 per cent AER," Springall said.

"The market-leading notice account within our Best Buys is held firm by Hinckley & Rugby Building Society which pays 5.25% on its 180-day notice account."

• Hinckley & Rugby Building Society 5.25 per cent AER/gross
• Investec Bank plc 5.25 per cent AER/5.13 per cent gross
• United Trust Bank 5.25 per cent AER/gross
• OakNorth Bank 5.20 per cent AER/5.08 per cent gross
• Vanquis Bank 5.20 per cent AER/gross
• Monument Bank 5.20 per cent AER/5.08 per cent gross
• Shawbrook Bank 5.16 per cent AER/gross
• Vanquis Bank 5.15 per cent AER/gross
• Charter Savings Bank 5.15 per cent AER/gross
• Bank of London and The Middle East 5.15 per cent AER/5.05 per cent gross

LATEST DEVELOPMENTS:

• HSBC UK launches new savings tool to help customers boost bank balance
• Metro Bank set to slash savings interest rates to sub-4% in blow to customers
• Savers urged to ‘grab a deal quickly’ ahead of interest rate cut

Regular savings accounts

“If savers wish to kick-start the savings habit with a regular savings account, 7.00 per cent AER is the leading top rate from a regular saver from The Co-operative Bank this week," Springall said.

• The Co-operative Bank 7.00 per cent AER/gross
• Nationwide Building Society 6.50 per cent AER/gross
• NatWest 6.17 per cent AER/6.00 per cent gross
• Royal Bank of Scotland 6.17 per cent AER/6.00 per cent gross
• Principality Building Society 6.00 per cent AER/gross
• West Brom Building Society 6.00 per cent AER/gross
• TSB 6.00 per cent AER/gross
• Saffron Building Society 5.75 per cent AER/gross
• Principality Building Society 5.50 per cent AER/gross
• Halifax 5.50 per cent AER/gross

Interest rates were compiled by Moneyfactscompare.co.uk at 10.29 on Monday, May 13.