The best fixed rate ISA savings rates
Savers will be pleased to see that many of last week’s top rates are still available in the ISA charts this week. The best rates overall continue to be offered in the fixed rate ISA charts and savers who are willing to lock their money away in a seven-year account can get a rate of 1.65% gross.
Savers should also be aware that although we have included ISAs that can be opened and managed in branch, consumers are advised to check with the bank or building society to ensure this service is still available, as many are only providing essential banking services in branch at the moment due to the Government’s restrictions on movement.
Shawbrook Bank continued to dominate the fixed rate ISA chart this week. It offered the best rate overall with its 7 Year Fixed Rate Cash ISA Bond Issue 1 paying 1.65% gross, as well as topping the five-year chart with its 5 Year Fixed Rate Cash ISA Bond Issue 23 paying 1.37% gross. It also features toward the top of the three-year chart with its 3 Year Fixed Rate Cash ISA Bond Issue 22 paying 1.15% gross. All these ISAs pay interest on anniversary and require a minimum opening deposit of £1,000. They all accept transfers in. These ISAs can only be opened online but can then be managed online and by phone. There are also versions of all these ISAs that pay interest monthly at a slightly lower gross rate.
For further details of the best ISA rates available go directly to our ISA comparison charts.
Product Spotlight: Two-year fixed rate ISAs
For those who want to make the most of their annual tax-free savings allowance but without locking away funds for the long term, a two-year fixed rate ISA could be just the thing.
• Al Rayan Bank tops our charts with its Fixed Term Deposit Cash ISA paying an expected profit rate of 1.41% quarterly for a minimum deposit of £1,000. This ISA can be both opened and managed in branch, online, by phone, post and smartphone app. Further additions and transfers in from other ISAs are permitted within 30 days of the account opening. No withdrawals are permitted.
• Paying 1.35% AER yearly for a minimum deposit of £500, Ford Money’s Fixed Cash ISA 2 Year is second. Early access is possible with the loss of 180 days’ interest. Further additions are permitted for up to 14 days from account opening, as are transfers-in from other ISAs. There is also an option paying interest monthly at a slightly reduced rate. It can be opened online or by phone and then operated online only.
• State Bank of India’s 2 Year Cash ISA Fixed Deposit is third, paying an interest rate of 1.35% AER on maturity for a minimum deposit of £5,000. Early access to funds is permitted on closure only and requires 30 days’ notice. In addition, no interest will be paid if the account is closed before the first anniversary and a 1% loss of interest penalty will apply if it is closed after the first anniversary. No further additions are permitted but transfers in from cash ISAs only are allowed. This account can only be opened in branch but can then also be managed online and by post thereafter.
Top products – At a glance
The best remortgage deals currently available
To help homeowners considering remortgaging choose the best deal, we’ve highlighted some of the best deals in the charts today. When deciding which deals to highlight, we’ve considered a range of factors including rate, fees, incentives and flexible features. As well as this, all the remortgage deals chosen are available using automated valuations.
One of the most competitive two-year remortgage deals currently available is from first direct, which offers a rate of 1.34% (3.2% APRC) fixed for two years and then reverts to 3.54% variable. This deal is available to those looking for a 60% loan-to-value (LTV). It charges £490 in product fees and comes with the incentives of a free valuation and no legal fees.
For homeowners searching for a remortgage deal on an 80% LTV, NatWest has one of the best two-year deals available. Its deal offers a rate of 1.51% (3.3% APRC) fixed until 30 June 2022, which then reverts to 3.59% variable. This deal charges £995 in product fees and comes with the incentives of a free valuation, no legal fees and £250 cashback.
To find out the best five-year remortgage deals, see the rest of this story online, take a look at the Product Spotlight for Five-year fixed rate remortgages below or go straight to our remortgage comparison tables…
Product Spotlight: Five-year fixed rate remortgages
If you are looking to remortgage and want the security of locking your new mortgage into a longer fixed term, our five-year fixed rate remortgage chart is offering some competitive rates.
• HSBC’s fixed mortgage deal offers a rate of 1.41% (2.8% APRC) fixed to 30 September 2025, which then reverts to 3.54% variable. This deal is available to those seeking a maximum 60% loan-to-value (LTV) up to £5 million with a minimum loan limit of £10,000. However, this deal is also restricted to those with a minimum income of £75,000 per annum. It charges £1,499 in product fees but comes with the incentive of free valuation and free legal fees.
• HSBC is also second in our chart this week with its fixed deal that offers a rate of 1.44% (2.8% APRC) fixed to 30 September 2025, which then reverts to 3.54% variable. It is available to all borrower types who are looking for a maximum 60% LTV and a minimum loan of £10,000. It charges £999 in product fees and includes the incentives of free valuation and free legal fees.
• Nationwide Building Society takes third place in our chart, with a deal offering a rate of 1.44% (2.9% APRC) fixed for five years before reverting to 3.59% variable. This remortgage-only deal is available to those looking for a maximum 60% LTV and is available for loans of between £25,000 and £299,999. The product fee is £999, and this deal comes with the attractive benefits of free valuation and either free legal fees or £500 cashback on completion, as well as permitting underpayments and overpayments.
Average annuity income falls to lowest point on record
Retirees looking for the security of an annuity will be disappointed to see that the average annuity income fell by 6% in the first three months of 2020, its lowest level on record.
Data published in the Moneyfacts UK Personal Pension Trends Treasury Report shows that between January to March 2020, the average annual standard annuity income for an individual aged 65 (based on a single life £10,000 level without guarantee annuity) was 1.7% lower than the previous lowest level recorded in October 2019.
In addition to this, those saving for retirement will also have seen their pension funds severely hit during the first three months of 2020. The impact of the Coronavirus pandemic on the global stocks markets has resulted in the average pension fund value falling by 15.2% during this period, its worst quarterly performance on record.
There was more bad news for retirement savers as many popular ABI pension fund sectors posted even heavier losses, with UK Smaller Companies (-31%), UK All Companies (-29.8%) and UK Equity Income (-28.4%) pension funds hit the hardest. In fact, just 11% of pension funds avoided losses during the first three months of 2020.
The combination of lower annuity rates and falling pension funds has had a significant impact on the retirement incomes available to those saving into a private pension and looking to take out an annuity. For example, an individual who had saved £100 gross per month into a personal pension for 20 years would have built up a final pension fund of £41,388. Using this to take an income through an annuity at age 65 means that they will now receive just £1,663 per annum, down by 18.7% on the start of the year, and 14.4% lower than the previous all-time low in October 2016.