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Glimmer of hope for savers as RCI Bank ups rate for third time this month

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Written by: Paloma Kubiak
27/01/2017
RCI Bank has upped the interest rate offered on its easy access savings account which could potentially increase competition in the market, according to an expert.

The bank, which launched in 2015, has increased the rate of its easy access Freedoms Savings Account to 1.10% for both new and existing customers.

This change takes RCI’s product to the top of the easy access savings account tables and was a rate last seen in September 2016.

RCI has also increased the rates on each of its fixed term bond offerings; its three-year product offers 1.70% AER, but Swedish Ikano Bank pips it to first place with 1.75%.

Its one and two-year rates have been boosted to 1.31% AER and 1.55% AER respectively, but again, other providers offer higher rates: Ikano and Atom Bank offer 1.40% on their one-year bond products, while independent bank, BLME, has an expected rate of 1.45% for its one-year bond, (minimum is £25,000), according to data firm Moneyfacts. Atom Bank leads the two-year bond tables with 1.60%.

Customers can open an RCI Bank account with a minimum £100 and maximum £1m and savers are protected under the French guarantee scheme, FGDR, up to the value of €100,000. See YourMoney.com’s Should I entrust foreign banks with my savings? for more information.

‘Increase means business’

Susan Hannums, director of independent saving adviser at Savingschampion.co.uk, said RCI Bank has continually been the leader in driving competition in the savings market since it launched in 2015.

“Dare we say that 2017 is showing some green shoots of recovery, beginning with a flurry of activity at the start of the month, with rates on the up for a change. But this increase from RCI means business, with a meaningful jump ahead of its competitors.

“We hope this move will stimulate even more competition in the easy access market, which has suffered so badly in recent years. Savers appear to have favoured the humble easy access account in last few years, most likely in the hope of being able to benefit from a rise in interest rates, that is so desperately needed. So this move to improve the rates available is great news.”

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