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Atom bank launches top fixed deals, but you can do better

Paloma Kubiak
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Paloma Kubiak

Atom Bank has launched two short-term fixed savings deals taking the offerings to the top of the best buy tables. But savers can do better, even without locking up their money.

The digital-only challenger has today added two new products to its Fixed Saver range, which can be opened with just £50: 

  • 3 month Fixed Saver, paying 1.29% gross, 1.30% AER
  • 6 month Fixed Saver, paying 1.79% gross, 1.80% AER.

While both offers take Atom to the top of the best buy tables in the three and six month categories – and mean savers no longer need to lock up their money for years at a time – there are better deals available.

Anna Bowes, director of independent savings advice site, Savings Champion, said: “It’s good to see a provider offering more choice for these underused fixed terms and these rates are the most competitive in the market, compared to its peers.

“However with the potential of an imminent base rate rise, many will feel that these rates are still unexciting, particularly with regard to the 3 month Fixed Saver. You can actually earn a better rate on an easy access account (National Counties and Coventry Building Society pay 1.35% gross/AER). And OakNorth Bank has a 90 Day Notice account paying 1.69% gross/AER.”

Bowes added that Secure Trust Bank is offering 1.77% gross/1.78% AER on its 180 notice account – just a shade lower than the Atom Bank 6 month Fixed Saver.

“While the rates on these alternative accounts are variable, one would hope that within this relatively short period, the only way to go if the rates were to change would be up, if the base rate is increased,” she said.