Highest rates since middle of last year for some savers – as possible future hike factored in
For this week’s guide, savings expert Anna Bowes from The Private Office looks at how providers are reacting to the possibility of a future Bank rate hike…
Conflict in the Middle East has increased the chances of the Bank of England putting up its base rate this year, which is great news for savers.
Analysts are widely expecting the Bank to hold its rate at 3.75% today, but some think it could raise it at future meetings if the war continues and causes inflation to rise.
Top fixed rates in particular have been rising, offering savers better options.
In the 1-year fixed-rate bond table, the top rate has only increased by 0.01% to 4.36%, but the average of the top five has increased by more.
A week ago, the average was 4.29% – today it’s 4.33%. Four of the top five are paying 4.35% or more, while a week ago it was just one.
In the two-year table, both the top rate and the average of the top five have improved considerably.
The best rate on offer is now 4.33%, up from 4.27% a week ago.
There has not been such a big jump in the three-year table, but the top rate has improved from 4.27% to 4.35% today.
“All in all, all the rate hikes we have seen mean that the top rates in all but the one-year table are the highest they have been all year, even though the base rate has stayed the same,” Bowes said.
Fixed-rate cash ISAs have moved in a similar direction, but not by as much.
In the one-year ISA table, the top rate on offer has risen from 4.2% a week ago to 4.22%.
In the two-year table, Tandem Bank pushed previous leader Furness Building Society, paying 4.2%, off the top spot, launching a new ISA paying 4.31%.
A trio of better-paying accounts in the five-year table have pushed former market leader Furness from the top spot. Tandem Bank is now paying 4.35%, while Castle Trust is just behind paying 4.34% – the highest rates since May last year.
“In the case of the top two-year and top five-year ISA rates, today’s are the highest we’ve seen since the middle of last year, so better now even though the base rate fell in both August and December 2025,” Bowes said.
It’s not been as positive news for easy access accounts. The best offer is still from Chase at 4.5%, including a 2.25% boost for 12 months.
The only change in the easy access cash ISA table is a rate cut from Moneybox, dropping the rate it’s offering from 4.52% to 4.26%.
Plum remains at the top, offering 4.66%, which includes a 12-month bonus of 2.12%.
