New short-term bonds

Tesco Bank launched a 15-month and two-year fixed rate bond this week. The 15-month version of its Fixed Rate Saver pays 0.40% gross on anniversary and the two-year version pays 0.50% gross on anniversary. Both options require a £2,000 minimum deposit to open. They do not allow further additions or withdrawals. These bonds can be opened by phone or online but must be managed by phone. For those looking to supplement their income there are versions of both bonds that pay interest monthly at the same gross rate.

At the same time, Tesco Bank increased the rates on its one three and five-year fixed rate bonds. The one-year version of its Fixed Rate Saver pays 0.35% gross, the three-year version pays 0.55% gross and the five-year version pays 0.75% gross. All versions pay interest on anniversary and require a £2,000 minimum deposit to open. These bonds do not permit further additions or withdrawals. They can be opened by phone or online but can only be managed by phone. For income-seekers there are versions of all these bonds that pay interest monthly at the same gross rate.

Competitive bonds rates rise

Bank of London and The Middle East (BLME) increased the rates on its one-year and 18-month fixed rate bonds this week, resulting in both bonds offering competitive rates for their terms. The one-year version of its Premier Deposit Account pays an expected profit rate of 0.90% gross on maturity and the 18-month version pays an expected profit rate of 0.95% gross on anniversary. Both bonds require a £1,000 minimum deposit to open, as well as a BLME transfer account to hold funds pending investment. These bonds do not allow further additions or withdrawals. They must be opened online and can only be managed by post.

Competitive ISA rate rise

This week, Cynergy Bank changed the issue number and increased the rate on its easy access ISA resulting it paying a highly competitive rate for its term. Online ISA (Issue 14) pays 0.54% gross yearly on a £1 opening minimum deposit. This ISA requires a Cynergy Bank Authenticator App or Digipass to open and operate the account. It allows further additions and withdrawals. Transfers in from cash ISAs are permitted on account opening only and there is no penalty for transfers out. The ISA must be opened and managed online.

At the same time, Cynergy Bank increased the rates on its one, two and three-year fixed rate ISAs. The one-year version of its Fixed Rate Cash ISA pays 0.55% gross and Loyalty

Fixed Rate Cash ISA pays 0.56% gross, the two-year version of its Fixed Rate Cash ISA pays 0.80% gross and Loyalty Fixed Rate Cash ISA pays 0.81% gross, and the three-year version of its Fixed Rate Cash ISA pays 0.95% gross and Loyalty Fixed Rate Cash ISA pays 0.96% gross. All options pay interest on anniversary and require a £500 minimum deposit to open. The loyalty ISAs are only available to existing customers of six months or more and all options require a Cynergy Bank Authenticator App or Digipass to use online banking. These ISAs allow further additions from a minimum of £100 but a variable rate of interest will be paid. Earlier access is allowed subject to 180 days’ loss of interest penalty. These ISAs accept transfers in from cash ISAs. Transfers out are permitted subject to the same interest-loss penalty as earlier access. They must be opened online but can then be managed by post, by phone and online.

Chart-topping notice account

Secure Trust Bank increased the rate on its 120-day notice account this week, resulting in it topping the chart for its notice term. 120 Day Notice Account pays 0.75% gross quarterly on a £1,000 minimum opening deposit. Further additions are allowed from a minimum of £1,000. Withdrawals are restricted to four interest withdrawals per annum and three capital withdrawals per annum on 120 days’ notice. The account must be opened online but can be managed by phone and online.

Two-year bond rate rise

Hodge Bank increased the rate on its two-year fixed rate bond this week. 2 Year Fixed Rate Bond pays 1.10% gross on anniversary on a £1,000 minimum opening deposit. This bond allows further additions within 10 working days of the account opening. Withdrawals are not permitted. It must be opened online but can then be managed by phone and online. For those looking to supplement their income there is a version of this bond that pays interest monthly at a slightly lower gross rate of 1.09%.

ISA rates increased

This week, Close Brothers Savings increased the rates on its two and three-year fixed rate ISAs. 2 Year Fixed Rate Cash ISA pays 0.76% gross and 3 Year Fixed Rate Cash ISA pays 0.86% gross. Both ISAs pay interest on anniversary and require a £10,000 minimum deposit to open. They allow further additions within 10 days of account opening. Earlier access is permitted on closure only and subject to 150 days’ loss of interest on the two-year version and 270 days’ loss of interest on the three-year option. Both ISAs accept transfers in, however, transfer instructions must be received within 10 days of the account opening. Transfers out are subject to the same interest-loss penalty as earlier access. These ISAs can only be opened online but can then be managed by post, by phone and online.

At the same time, Close Brothers Savings increased the rate on its 95-day notice account. 95 Day Notice Account (Issue 10) pays 0.67% gross yearly on a £10,000 minimum opening deposit. This account allows both further additions and withdrawals. It must be opened online but can be managed by post, by phone and online.

Bonds rates increased

Vanquis Bank Savings increased the rate on its two, three, four and five-year fixed rate bonds. The two-year version of its Vanquis Bank Savings pays 1.01% gross, the three-year option pays 1.11% gross, the four-year option pays 1.15% gross and the five-year version pays 1.46% gross. All versions pay interest on anniversary and require a £1,000 minimum deposit to open. They do not permit further additions or withdrawals. These bonds can only be opened online but can then be managed by post, by phone and online. For those looking to supplement their income there are versions of these bonds that pay interest monthly at the same gross rate on the two-year option and a slightly lower rate of 1.10%, 1.14% and 1.45% respectively on the three, four and five-year options.