30 May 2024
With talk that interest rates may soon be cut by the Bank of England, financial advisers can still secure their clients a rate of more than 5% when it comes to cash savings, Quilter can reveal.
Looking at the best buys for May available on the CashHub through Quilter’s platform, the current leading rate is 5.10% provided by Investec. This account comes with a notice period of 95 days.
When it comes to easy access accounts, the best rate available is 4.60% from Santander International.
Meanwhile Al Rayan Bank is the top pick for those seeking a fixed term savings account, with it offering Shariah compliant rates of 5.05%, 4.77% and 4.55% over one, two and three years respectively.
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Best savings rates available (AER) - May 2024 |
|||
|
Bank |
Minimum deposit |
Interest rate |
|
|
Easy access |
Santander International |
£1 |
4.60% |
|
Notice account |
Investec |
£1 |
5.10% |
|
One-year fixed term |
Al Rayan |
£5,000 |
5.05% |
|
Two-year fixed term |
Al Rayan |
£5,000 |
4.77% |
|
Three-year fixed term |
Al Rayan |
£5,000 |
4.55% |
Figures correct as at 16th May 2024
The notice account rate from Investec and the instant access offering from Santander International were introduced to the platform last month and are platform market exclusive rates for users of the Quilter CashHub.
Over the past three months, the Quilter CashHub has seen interest rates on savings accounts climb following economic data that pushed interest rate cut expectations back. As a result, and combined with the introduction of new rates available, customers using the Quilter CashHub have seen the average rate available across all accounts increase.
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Average savings rates |
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|
Feb-24 |
May-24 |
|
|
Easy access |
4.13% |
4.21% |
|
Notice account |
4.48% |
4.68% |
|
One year fixed term |
4.63% |
4.70% |
|
Two-year fixed term |
4.16% |
4.48% |
|
Three-year fixed term |
4.11% |
4.18% |
Figures correct as at 13th Feb 2024 and 16th May 2024
Launched earlier this year, the Cash Hub provides access to a wide range of banks and savings accounts offering competitive interest rates, including easy access, notice period and fixed term options. The Quilter CashHub, powered by Bondsmith and available via Quilter’s app or online customer portal, allows advisers to see their clients’ cash savings alongside their Quilter platform investments, streamlining the management of their finances and providing them with better visibility of their overall wealth.
Jenny Davidson, commercial proposition director at Quilter, commented: “Despite the talk of interest rate cuts from the Bank of England on the horizon, the rates available to savers remain robust. With rates of over 5% still available on the market, it is vital that any short-term or emergency assets are made to sweat as much as possible. With competitive rates from the likes of Investec and Santander available via the Quilter CashHub, advisers have the opportunity to produce good outcomes for clients’ dormant cash buffers.
“When interest rates do start to fall, it will likely to be carried out in a very gradual manner. How the savings providers react will be interesting to watch, and it is where cash has become such a crucial asset class to advise on. It could be that savings rates are disproportionately slashed, and as such for an adviser it will be important to have a handle on where the best rates are and move clients’ short-term holdings if something better becomes available.
“Since launch, we have seen a good amount of interest in the Quilter CashHub as it is clear advisers want an integrated cash management solution. Having a holistic view of client assets is so important regardless of how they are invested or saved. The Quilter CashHub offers exclusive and competitive rates for customers and are looking forward to seeing it develop as more and more advisers look to manager their clients’ cash holdings.”
A full list of available savings accounts and interest rates can be found on the Quilter website.
