Wyelands Bank has leapfrogged to the top of the independent This is Money best buy savings tables with two new fixed-rate accounts.
While not a great leap, a 0.1 percentage point increase is better than the typical marginal 0.01 percentage point improvement banks often use to climb up the tables.
Furthermore, it has also boosted the rate on its two-year deal to 2.25 per cent, giving it a slim 0.05 percentage point lead over a clutch of deals at 2.2 per cent.
On the up: Wyelands Bank has pushed up rates on both one and two-year fixed rate bonds
Wyelands Bank requires a £5,000 minimum deposit and accounts can only be opened and managed online. Both deals offer interest payments annually or monthly.
The bank is part of the Financial Services Compensation Scheme.
Those preferring a smaller minimum balance will be better off looking at Atom Bank for the next best alternative, paying 2.05 per cent over one year or BM Savings for a two year fix paying 2.2 per cent.
Currently savings market place, Raisin, is offering up to £80 cashback if you open certain fixed rate savings deals through it’s website that could earn you marginally more.
Cashback is tiered however and you only earn the full £80 if you deposit over £40,000 into your account.
Over the course of a year a 1.95 per cent rate, including the bonus, pays a couple of pounds more than the higher 2.15 per cent rate would earn you without a bonus.
In addition to its new market leading one and two year rates, Wyelands Bank, has also boosted its six-month fixed rate account to pay 1.6 per cent, and its 95 day notice deal, to pay 1.62 per cent.
However, while both deals are competitive, neither is a best buy rate.
None of the above accounts beat the current rate of inflation, which stands at 2.4 per cent.
Savers still currently need to fix at five years to beat it – with the top deals currently offering 2.68 per cent.
Increasing: How rates compare to other base rate changes over the years
Is the tide about to turn for savers?
The Wyelands Bank increases come hot on the heels of last week’s Bank of England interest rate rise, which could be welcome news to the country’s interest-starved savers.
However, savers shouldn’t hold out hope for a wave of generous new savings rates according to experts.
According to research by advice website Savings Champion while rates fell after the base rate decrease in August 2015, banks didn’t pass on last year’s interest rate rise to savers.
Its figures show interest on the average savings account rose less than 0.25 per cent between last November’s rate rise and the Bank of England’s announcement on Thursday last week.
The average easy-access savings rate in fact only rose by 0.9 percentage points.
Anna Bowes, co-founder of Savings Champion, said: ‘Savers have been waiting long enough for a positive move in the base rate, as we’ve been stuck with record low rates for almost a decade.
‘This latest move has been a long time coming.
‘However, savers cannot afford to be complacent.
‘The link between the base rate and providers’ savings rates has detached over the years and some providers didn’t increase rates at all following the last rise in the base rate – others by far smaller margins than you would expect.’
It’s not all bad news as Savings Champion’s figures also showed that last week the number of banks nudging up savings rates rose from 47 per cent to 85 per cent.
Charles Haresnape, chief executive of challenger bank Gatehouse, thinks the base rate rise will push up rates eventually.
He said: ‘The decision to increase the base rate means there is light at the end of the tunnel for UK savers who have faced a lost decade in the low interest rate environment, which has done little to help them build nest eggs for holidays, homes or retirement.
‘Savers can now look forward to returns from savings accounts climbing, but this is unlikely to happen overnight.
‘While it is likely to be a long time before rates ever return to what anyone over the age of 40 considers “normal”, it’s important that people understand the positive impact that getting into the habit of savings can have, helping them to make major purchases or as a safety net for unforeseen financial emergencies.’
THIS IS MONEY’S FIVE OF THE BEST SAVINGS DEALS