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WEEKLY
16 October 2014
LATEST
TOP RATES
CASH ISAs
AER
Easy Access
£1K
1.65%
£5K
1.65%
Notice Variable
2.10%
2.10%
1 Year Fixed
1.70%
1.70%
1 Year Fixed
2 Year Fixed
3 Year Fixed
4 Year Fixed
5 Year Fixed
1.50%
2.10%
2.25%
2.90%
2.75%
VARIABLE RATES
AER
Easy Access
£10K
2.25%
1.50%
2.10%
2.25%
2.90%
2.75%
£50K
1.81%
2.60%
AER
1 Year
1 Year
2 Year
3 Year
4 Year
5 Year +
£10K
Variable
Fixed
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£50K
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1.50%
1.50%
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2.32%
2.32%
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2.02%
2.70%
3.01%
3.52%
2.02%
2.70%
3.01%
3.52%
OFFSHORE ACCOUNTS
AER
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3 Months +
FIXED RATES
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1.76%
1.51%
1.76%
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1.51%
3 Months
n Best easy access ISA
Raising rates, and now offering the
market-leading easy access account and
SEARCH ISA that are open to all, is BM Savings.
Following the rise, both ISA Extra (Issue
12) and BM Online Extra (Issue 14) now
pay 1.60% yearly, including a bonus of
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1.10% for 12 months, which makes a
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review of their competitiveness a must in a
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year’s time.
2.25%
1 Month
£10K
1.50%
2.30%
£50K
1.50%
2.30%
BUSINESSES Charities, Clubs,
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Pension Funds, Client A/cs etc
AER
£10K
£50K
Fixed
3.52%
3.52%
AER
£25pm
£100pm
Fixed
6.00%
6.00%
Variable
1.80%
1.80%
REGULAR SAVINGS
Variable
4.00%
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2.75%
AER
£100
£1K
Fixed
2.50%
2.50%
CHILDRENS ACCOUNTS
JISA
3.02%
4.00%
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2.75%
Variable
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4.00%
ISA
Cookie Policy
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3.00%
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4.00%
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Full list of Guides
While a minimum deposit of £1 is needed
for the ISA and £1,000 for the easy access
account, both deals allow additional
deposits and restriction-free withdrawals.
The ISA, which can be opened by post,
over the phone, or online and operated by
post, also accepts transfers in and allows
transfers out penalty-free.
The easy access account, however, can
only be opened and operated online. If you
would prefer to take a regular tax-free
income from your savings, an alternative
version of the ISA paying an annual rate of
1.59% on a monthly basis is also available
(including a 1.09% bonus for 12 months).
Reviews
Guides
STOP PRESS...
Paying the best rate if you want a
long-term ISA is Principality BS.
From a minimum deposit of £500,
5 Year Fixed Rate Cash ISA Issue
129 pays 2.75% yearly. Additional
deposits are allowed while the
issue remains open and transfers
in are accepted, too. Early access
to funds is possible by closing the
account and losing 360 days’
interest. The same penalty applies
if transferring out of this branch,
postal and internet-operated ISA.
Leading the way among short-term
notice ISAs is Charity Bank, which
uses deposits to lend to UK
charities and social enterprises.
From a minimum deposit of £250,
Ethical ISA 3rd Issue is a 33-day
notice ISA paying 1.50% yearly.
This postal-operated account
allows additional deposits and
unlimited withdrawals, but it is not
possible to waive the notice period
and access funds early.
Transfers in are not
accepted.
n New two-year bond
Relaunched, and still highly competitive if
you want a two-year bond, is Secure Trust Bank. From a minimum deposit of
£1,000, Fixed Rate Bond 2 Year Term (Series 7) pays 2.11% yearly. Additional
deposits are welcome as long as the issue remains open, but early access to funds
prior to maturity is not allowed. The bond must be opened online and operated over
the phone or by post.
n Fixed ISAs improved
Improving rates and its position in the one and three-year fixed rate ISA markets is
Skipton BS. Requiring a minimum deposit of £500, 1 Year Fixed Rate ISA Issue 3
now pays 1.50% yearly while its three-year equivalent has a rate of 2.20% yearly,
making both accounts highly competitive for their respective terms.
Additional deposits are allowed as long as an issue remains open, while transfers in
can be made for up to 30 days after an issue closes. The only way to access funds
prior to maturity is through closure of the ISAs, which carries a 180-day loss of
interest penalty, the same penalty as applies if transferring out. The ISAs can be
opened and operated in branch or by post, but will also accept additional deposits
over the phone. Online versions of the ISAs paying the same rates are also
available.
Looking for an Easy Access Cash ISA? See Latest Top Rates in left hand column
®
n Five-year fix review
Recently reviewed, and still paying one of the best rates if you want to fix for five
years, is Market Harborough BS. From a minimum deposit of £1,000, 5 Year Fixed
Term Bond Issue 14 pays 3.00% yearly. Neither additional deposits nor early access
to funds are allowed from this bond, which can be opened and operated in branch,
by post, over the phone or online.
IN FOCUS
Monthly Income
If you are looking to supplement
your income through your
savings, many banks and
building societies offer accounts
that pay monthly interest.
n Best three-year bond
Paying the top rate if you have a significant deposit to put away for the medium-term
is Axis Bank UK Ltd. While the minimum deposit of £10,000 pays 2.45% yearly, the
rate on the three-year Fixed Deposit Account rises to 2.50% at £30,000 and a
market-leading 2.55% at £50,000 (up to a maximum of £200,000).
The top monthly-paying easy
access account is from Kent
Reliance. From a minimum
deposit of £1,000, Branch Easy
Access Savings Issue 1 pays an
annual rate of 1.49% on a
monthly basis, without the added
complication of a short-term
bonus. This branch-based
account has no restrictions on
withdrawals, while additional
deposits can be made at any
time by cash, cheque or bank
transfer.
The bond, which can be opened and operated in branch or by post, does not allow
additional deposits or early access to funds.
n Market-leading one-year bond
The market-leading one-year bond at present is from Islamic Bank of Britain. From
an opening deposit of £1,000, Fixed Term Deposit pays an indicative profit rate of
1.90% on maturity. As with most fixed rate accounts, further deposits cannot be
made once the bond is open and withdrawals are not allowed.
The bond can be opened and operated in branch, by post, over the phone and
online, while deposits are covered by the Financial Services Compensation Scheme
(FSCS) up to the maximum of £85,000 per person.
n Notice this top account
The top-paying short-term notice account free from opening restrictions is from Manchester BS. Requiring a minimum
deposit of £1,000, Platinum Notice Issue 5 is a 45-day notice account paying 1.51% yearly. Although there are no
restrictions on withdrawals, it is not possible to access funds early, with 45 days’ notice always having to be served. The
account, which can be opened and operated in branch or by post, will accept additional deposits.
n Branch out into an ISA
Leading the way among branch-operated one-year ISAs is Halifax. From a minimum deposit of £500, 1 Year ISA Saver
Fixed pays 1.55% yearly. Transfers in and additional deposits are welcome, but all funds must be deposited within 60 days
of the account opening. Early access to funds is only possible by closing the ISA and losing 90 days’ interest, the same
penalty as applies if transferring out. The ISA can be opened in branch, over the phone or online, and then operated in
branch or by phone.
n Notice this business account
Currently paying the top rate if you run a business and are willing to give notice before accessing your funds is Cambridge
& Counties Bank. From a minimum investment of £10,000, 95 Day Notice Business Savings Account Issue 4 pays 1.80%
yearly, with further deposits allowed by cheque or via a nominated current account.
Although there are no restrictions on withdrawals, there is no option to access funds early, with 95 days’ notice having to be
given on all withdrawals. The account must be opened by post and then managed by post or online. If you would prefer to
take a regular income, an alternative version of the account paying an annual rate of 1.79% on a monthly basis is also
available.
Full list of Guides
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Who Owns Whom?
s
Guide
Bank and Building Society Reviews
Visit our Review Pages to read the savings
experiences of others and share your own
The reviews are the opinions of our readers and not of Savers Friend.
How safe are your savings?
Our guide to Depositor Protection tells
you what guarantees apply if your bank or
building society goes bust, while our guide to
Who Owns Whom? tells you where your
bank or building society is licenced.
Ask Rachel
Working in the financial industry for over 30 years, Rachel Thrussell is
the leading independent expert on UK savings products. Her views are
constantly in demand from both the industry and the press.
Do you expect rates on savings accounts to increase when the base rate
increases?
It’s very difficult to say. When it was tentatively suggested that the Bank of England
could soon raise the base rate earlier this year, the cost of new mortgages rose to
reflect that. Savings rates might reasonably have been expected to rise too, but
actually continued the trend of the last few years, with little inclination shown by the
banks and building societies to improve rates.
The main problem is that banks and building societies don’t really need depositors’
money to fund their lending activities at the moment, and so see little reason to
compete for savers’ money. I think we will really only know the answer to this
question when the Bank of England finally makes its move.
Get your savings questions answered by Rachel by emailing
[email protected] We regret we cannot answer emails personally
This week’s
average rates
How do your savings compare?
No Notice
Notice
Cash ISA
1 Year Fixed Rate Bond
2 Year Fixed Rate Bond
3 Year Fixed Rate Bond
4 Year Fixed Rate Bond
5 Year Fixed Rate Bond
0.67%
0.84%
1.53%
1.44%
1.83%
2.08%
2.44%
2.60%
16 October 2014
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A golden opportunity to make a Mint?
While all that glitters may not be gold, a new website means it is now easier for hard-pressed savers looking to make more
from their nest-eggs to invest in the precious metal. Following an estimate that an extra £4 billion could be invested in gold if
the process of buying it or converting it into savings was easier, the Royal Mint, which produces all the coins of the United
Kingdom and develops currency for more than 60 countries around the world, has launched a website that aims to do just that.
Although the Mint has its roots in the ninth century, its new online bullion coin service means the world-renowned institution is
now firmly in the 21st century. Up until now, bullion coins, which are produced to be kept as a store of value or an investment,
have been available only through dealers. With the launch of the bullion coin service, however, the coins are available direct to
the public. Starting prices are not prohibitive, either, with investors able to buy one coin at a time if they wish.
The cheapest gold coin, the 22 carat Sovereign 2014, which carries a traditional St George and the Dragon design, currently
costs around £206 when bought individually, while silver coins are available from around £19. At the other end of the scale,
the Lunar Series 2014 “Year of the Horse” UK Gold Bullion Coin, which contains one ounce of 999.9 fine gold (24 carat), will
set an investor back around £840. There is no upper limit on how much bullion an investor can buy, no VAT to be paid on
gold bullion coins (silver bullion is subject to VAT at 20%), and no capital gains tax if the coins are legal tender, which the
above examples all are.
The Vault
Investors can have their coins sent to them for safe-keeping at home, or perhaps in a bank safety deposit box. Alternatively,
it is possible to pay to have them stored at the Royal Mint Vault, a secure facility in South Wales protected by the Ministry of
Defence. Storage is charged at 1% + VAT per annum, meaning it would cost £60 a year to have around £5,000 of gold
bullion kept under the tightest of lock and keys. A definite bonus of leaving coins in the Vault is a buy-back facility that will
see the Mint buy the coins back from investors when they want to cash in. The amount offered by the Mint will be based on
a percentage of the day’s gold price, so of course, with the value of the coins changing according to the market, there is a
significant risk involved in buying bullion.
Typically viewed by investors as a safe-haven in times of crisis, gold prices tend to rise when there are serious economic
concerns, and fall when the situation improves. Of course, this is far from being a hard and fast rule, while fluctuations in
price can be huge over time. In the last decade, gold prices climbed from around $418 per ounce in October 2004 to a
10-year high of around $1,900 in the autumn 2011; however, the subsequent fall to around $1,200 today shows how quickly
fortunes can change.
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