Savings rates continue to rise with new best buy easy-access and fix

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Savings rates have continued to rise in the aftermath of the Bank of England’s base rate hike last week.

There are now 11 banks and building societies paying 4 per cent or more on easy-access deals.

Meanwhile, fixed-rate deals have also been heading upwards. The average one-year fix has risen from 4.49 per cent on Thursday to 4.61 per cent today, according to Moneyfacts. 

The best one-year fix now pays 5.78 per cent while the the best longer term deal pays 5.85 per cent over a three year period.

– Check out the best fixed rate savings deals here. 

The average one-year fix has risen from 4.49% on Thursday to 4.61% as of today.

The Bank of England increased base rate 0.5 percentage points to 5 per cent, last Thursday, in its latest move to tackle stubbornly high inflation.

The decision marked the bank’s 13th base rate hike since December 2021, resulting in the sharpest rise since 1989 – a jump of 4.9 percentage points over 18 months.

Some banks seemingly pre-empted the Bank of England having already upped their savings rates in the days leading up to the decision, however, many more have made changes since.

This includes the savings and investment app, Chip*, which today upped its instant access savings rate to 4.21 per cent.

Below Chip, is GB Bank*, which is currently offering a 4.15 per cent easy-access deal via the savings platform, Raisin UK.

Principality Building Society has upped its Double Access account to also pay 4.15 per cent – albeit savers are limited to making two withdrawals a year.

Next comes Cynergy Bank, which pays 4.12 per cent on its easy-access deal and Oxbury Bank, which now pays 4.11 per cent.

Savers putting £10,000 in Chip’s deal can expect to earn £421 of interest over the next month – if rates remains the same. 

– Check out the best easy-access savigs rates here. 

The best one-year and two-year fix both pay 5.78 per cent – courtesy of Oxbury Bank.

Someone putting £10,000 in the best one-year could expect to earn £578 of interest over the next 12 months. 

Prior to the base rate only Ahli United Bank was paying 5.7 per cent. Now eight providers pay 5.7 per cent or higher.

The highest paying fixed rate deal is offered by Recognise Bank and pays 5.85 per cent over a three year period.

Someone stashing £10,000 in this account could expect to earn £1,860 over the next three years.

What other notable changes happened?

It wasn’t just at the top of the best buy savings tables where the action happened. Swathes of banks and building societies decided to take action following the base rate hike.

Lloyds Bank launched two fixed cash Isa deals that offer savers tax-free interest of up to 5.05 per cent. 

– Check out the best cash Isa rates here.  

Challenger banks Chase and Monzo upped the rates on their instant access linked savings accounts. 

Monzo customers saw the linked easy-access rate rise immediately from 3.4 per cent to 3.7 per cent. From 3 July, Chase’s 1.6 million UK banking customers will see the rate rise on its linked savings account from 3.3 per cent to 3.8 per cent.

Popular app based savings providers Atom Bank and Zopa upped rates as well.

Atom upped its easy-access savings rate from 3.2 per cent to 3.95 per cent, while Zopa increased its deal from 3.52 per cent to 3.92 per cent.

This post first appeared on Dailymail.co.uk