ISSN 2631-570X (Online)

12 November 2019

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AER	£1K	£5K
CASH ISAs
Easy Access	-	-
Notice Variable	-	-
1 Year Fixed	-	-
2 Year Fixed	-	-
3 Year Fixed	-	-
4 Year Fixed	-	-
5 Year Fixed	-	-
Lifetime ISAs	-	-

AER	£10K	£50K
VARIABLE RATES
Easy Access	-	-
1 Month	-	-
3 Months	-	-
3 Months +	-	-

AER	£10K	£50K
FIXED RATES
1 Year	-	-
1 Year	-	-
2 Year	-	-
3 Year	-	-
4 Year	-	-
5 Year +	-	-

AER	£10K	£50K
OFFSHORE ACCOUNTS
Variable	-	-
Fixed	-	-

AER	£10K	£50K
BUSINESSES Charities, Clubs, Pension Funds, Client A/cs etc
Variable	-	-
Fixed	-	-

AER	£25pm	£100pm
REGULAR SAVINGS
Variable	-	-
Fixed	-	-
ISA	-	-
Help to Buy ISA	-	-

AER	£100	£1K
CHILDRENS ACCOUNTS
Variable	-	-
Fixed	-	-
JISA	-	-

Full list of Guides

Principality Building Society launched a festive-themed regular savings account this week. Christmas 2020 Regular Saver Bond pays 2.70% on maturity on an opening minimum deposit of £10. This one-year account has a maximum monthly deposit of £125, but no minimum. The maximum savers can deposit into the account is £1,500 and no withdrawals are allowed. It can be opened and managed in branch, by post
and online.

ISA rate rise

Tesco Bank increased the rate on its easy access ISA this week. Instant Access Cash ISA pays 1.25%, including a 0.90% bonus for 12 months, on anniversary. This ISA has an opening minimum deposit of just £1. It allows unlimited further additions, while withdrawals are permitted as online transfers with a maximum withdrawal limit of £10,000 to non-Tesco Bank accounts and £100,000 limit to Tesco Bank accounts. Transfers in are allowed and there is no penalty for transfers out. The ISA can be opened by phone or online and then managed by mobile app as well.

At the same time, Tesco Bank increased the rate on one of its easy access accounts this week. Internet Saver pays 1.16%, including a 0.81% bonus for 12 months, yearly. This account requires an opening minimum deposit of just £1 and allows unlimited further additions. Withdrawals are allowed but restricted to a maximum withdrawal limit of £10,000 to non-Tesco Bank accounts and a £100,000 limit to Tesco Bank accounts. This account can only be opened online but then managed by mobile app as well.

Range of bonds launched

This week saw Gatehouse Bank launch a range of fixed rate bonds. Raisin UK – 1 Year Fixed Term Deposit pays an expected profit rate of 1.85%, Raisin UK – 2 Year Fixed Term Deposit pays an expected profit rate of 2.10%, Raisin UK – 3 Year Fixed Term Deposit pays an expected profit rate of 2.20% and Raisin UK – 5 Year Fixed Term Deposit pays an expected profit rate of 2.30%. All bonds pay profit on maturity and require a minimum opening deposit of £1,000. Further additions and withdrawals are not permitted on any of the bonds. They must be opened online but can then also be managed by post and by phone. In addition to this, Raisin UK is offering a bonus of up to £100 when a savings account is opened via its website.

Competitive new ISA

Hampshire Trust Bank launched a two-year ISA this week offering a highly competitive rate for its terms. 2 Year ISA Bond (Issue 1) pays 1.60% on anniversary on an opening minimum deposit of just £1. This ISA allows further additions within 14 days of account opening via a nominated account, while earlier access is permitted but subject to 90 days’ loss of interest. Transfers in are allowed, while transfers out are subject to same interest penalty as withdrawals. This ISA can be opened by post or online and then managed by post, by phone, and online.

Easy access rate rise

This week saw Post Office Money® increase the rate on one of its easy access accounts. Online Saver Issue 41 pays 1.30%, including a 0.80% bonus for 12 months,

Looking for an Easy Access Cash ISA? See Latest Top Rates in left hand column

Variable rate bonds

Variable rate bonds offer a great alternative for those who are wary about locking their funds into a fixed rate bond and potentially missing out on the prospect of future rate rises.

The market-leading variable rate bond at present comes from Family Building Society. From a minimum opening deposit of £5,000, 5 Year Tracker Rate Bond (4) pays a variable rate of 2.02% yearly, with the guarantee that the gross rate will be 1.27% above the Bank of England base rate for 60 months. Additional deposits can be made for up to 15 days from opening, but early access to funds is not allowed with this bond, which can be opened in branch, by post or online and then managed by all of these channels as well as by phone.

yearly. This account requires a minimum opening deposit of just £1 and allows unlimited further additions and withdrawals. It can only be opened and managed online.

At the same time, Post Office Money® increased the rate on its loyalty easy access account. Online Loyalty Saver Issue 7 pays 1.35% yearly on an opening minimum deposit of £50. This account is only available to existing Post Office Money® customers. It allows unlimited further additions and withdrawals. The account can be opened by post, by phone or online, then managed online only.

For those looking to supplement their income, there are versions of both accounts that pay interest monthly at a slightly lower gross rate.

New notice account

A new notice account was launched by Paragon Bank this week. 40 Day Notice Account (Issue 2) pays 1.35% on anniversary on an opening minimum deposit of £500. This account allows further additions via a nominated account, withdrawals also must be made via a nominated account and are subject to 40 days’ notice. This account can only be opened and managed online. For those looking to supplement their income, there is a version of this account that pays interest monthly at a slightly lower gross rate.

New one-year bond

This week, PCF Bank launched a one-year fixed rate bond. 1 Year Term Deposit Issue 24 pays 1.75% on anniversary on a minimum deposit of £1,000. This bond allows further additions within 14 days from account opening, while withdrawals are not allowed. The bond can be opened by post or online and then managed by post, by phone and online.

New online-only ISAs

A range of fixed rate ISAs was launched by Wesleyan Bank this week. The one-year version of its Internet Only Cash ISA pays 1.50%, the two-year version pays 1.63%, while the three, four and five-year equivalents pay 1.75%, 1.85% and 1.90% respectively. All ISAs pay interest yearly and require a minimum opening deposit of £20,000. Further additions are not allowed, while withdrawals are permitted but subject to up to 90 days’ loss of interest on the one and two-year versions and up to 180 days’ loss of interest on the three, four and five-year versions. These online-only ISAs allow transfers in, while transfers out have the same interest penalty as withdrawals.

Easy access launched

Darlington Building Society launched an easy access account this week. Triple Access Saver pays 0.65% yearly on an opening minimum deposit of £1. This account allows further additions while the issue remains open, while withdrawals are restricted to three per calendar year including closure. This account can be opened and managed in branch and by post.

Bond end dates moved

Secure Trust Bank moved the end dates on its fixed rate bonds this week. 1 Year Fixed Rate Bond pays 1.65%, 18 Month Fixed Rate Bond pays 1.70%, 2 Year Fixed Rate Bond pays 1.75%, 3 Year Fixed Rate Bond pays 1.80%, 4 Year Fixed Rate Bond pays 1.85%, 5 Year Fixed Rate Bond pays 1.90%, 6 Year Fixed Rate Bond pays 1.95% and 7 Year Fixed Rate Bond pays 2.00%. All bonds pay interest yearly and require a minimum deposit of £1,000 to open. The one-year version now has an end date of 09.12.20, the 18-month version ends 09.06.21, the two-year version ends 09.12.21, the three-year version ends 09.12.22, the four-year version ends 08.12.23, the five-year version ends 09.12.24, the six-year version ends 09.12.25 and the seven-year version ends 09.12.26. All bonds allow further additions for 30 days from account opening or by 13.12.19, whichever is sooner. Withdrawals are not permitted. The bonds can be opened online, then managed by phone as well.

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.

I have never had an ISA but have £40,000 to invest – as I know little about the savings market, what would you suggest?

First, you will need to decide whether you need access to your money or are happy to lock some or even all of it away for a certain length of time in a fixed rate bond – the longer you are willing to fix your rate for, the higher the rate of interest you will be able to receive, but of course, access to your cash will be limited.

Whatever you decide, a cash ISA – whether an easy access ISA or a fixed rate ISA – is an excellent idea, as interest earned in these accounts is tax-free. However, the most you can save into an ISA in the current tax year is £20,000, meaning you will still have another £20,000 to place into another account. The good news is that the Personal Savings Allowance means basic rate taxpayers can earn £1,000 of savings interest a year in any savings account tax-free, so you should still be protected from the tax-man.

Get your savings questions answered by Rachel by emailing rachel@saversfriend.co.uk We regret we cannot answer emails personally

This week's
average rates

How do your savings compare?

No Notice	0.63%
Notice	1.13%
Cash ISA	1.13%
1 Year Fixed Rate Bond	1.28%
2 Year Fixed Rate Bond	1.34%
3 Year Fixed Rate Bond	1.49%
4 Year Fixed Rate Bond	1.71%
5 Year Fixed Rate Bond	1.75%
12 November 2019

Alternative sources of income

Goldman Sachs to launch stocks and shares ISA

Investing in stocks and shares ISA is a popular alternative to depositing money into a cash ISA as they can yield greater returns while still benefiting from the tax-free allowance, but they also involve a greater risk to the money deposited.

Those looking to invest in a stocks and shares ISA will get a greater choice of products from early 2020 as Marcus by Goldman Sachs® has revealed that it is entering into the market. The bank, which is the UK retail banking arm of US-based investment bank Goldman Sachs, has announced that it has teamed up with online wealth manager Nutmeg to offer its first stocks and shares ISA. The product, which is expected to be launched in time for the spring ISA season next year, follows on from the success Marcus by Goldman Sachs® has achieved with its popular easy access savings account.

By launching a stocks and shares ISA, Marcus by Goldman Sachs® will be able to offer a product to UK investors that enables them to deposit up to £20,000 in tax-free savings into the ISA each tax year. Those considering a stocks and shares ISA, however, should be aware that these ISAs come at a greater risk than cash ISAs and while they often result in a better return on investment, they can also result in investors losing their money.

Saying this, stocks and shares ISAs have proved popular with UK investors. According to data released by HM Revenue & Customs, nearly 250,000 UK adults paid into a stocks and shares ISA in 2017-18, with the total market value of investments held within the accounts estimated to be £334bn at April 2018.

Commenting on the launch of the stocks and shares ISA from Marcus by Goldman Sachs®, Rachel Springall, finance expert at Moneyfacts.co.uk said: “If savers decide to invest their cash into a stocks and shares ISA then they must be vigilant of fund management charges and keep in mind that the value can go down as well as up.

“However, the growth potential may well persuade some to consider this option, but it’s worth remembering that past performance is no guarantee of the future. Those customers concerned about the risks or confused by funds on offer should seek advice and ensure they are happy with their risk portfolio before they invest. Whatever they decide to do, typically saving little and often, over the longer-term is a reasonable goal to give the pot time to grow.”

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Goldman Sachs to launch stocks and shares ISA

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