Savings update: Savers are snapping up fixed-rate bonds

21 November 2018

Savers are snapping up shorter-term fixed-rate bonds, which means that they disappear within days of going on sale.

Providers withdraw them from sale as soon as they have attracted sufficient money to fund their current lending.

Top deals include OakNorth Bank, which pays 1.8% fixed for six months. For one-year deals, the current best buy is 2.05% from Tandem Bank, with OakNorth Bank paying 2.02% and Charter Savings Bank and Kent Reliance paying  2.01%.

Investec Bank pays 2.15% for 18 months, while the best rate on offer for two years is 2.3% from Tandem BankCharter Savings Bank and Investec Bank.

The top easy-access savings deal is the Marcus account from US investment bank Goldman Sachs, paying 1.5% interest, including a 0.15 percentage point bonus for a year. The top rate without a bonus or any withdrawal restrictions is 1.4% from Charter Savings Bank, Shawbrook Bank and Kent Reliance.

On tax-free Cash Isas, both Charter Savings Bank and Virgin Money pay 1.4%, but with the Virgin account you are limited to two withdrawals a year.

On fixed-rate cash Isas, Charter Savings Bank and Al Rayan Bank both pay a top rate of 1.6%, while Paragon, Aldermore, Clydesdale, Kent Reliance and Yorkshire banks all pay 1.55%.

For two years, you can earn 1.82% with both Paragon and Bank of Cyprus UK.

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