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Battle of app-only providers sees interest rates ramp up: This week’s top payers

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
07/03/2023

Digital challengers are battling it out to entice savers with their market-leading interest rates. Here are the top deals right now.

Leaving your money languishing in a low-paying savings account or your current account means you could be missing out on valuable interest. With the cost-of-living crisis and inflation still in double digits, it’s more important than ever to make every penny count.

Savings interest rates have been rising off the back of 10 Bank of England base rate hikes and while savers hope they can earn a little more, the governor has hinted we could be close to the peak.

Anna Bowes, co-founder of Savings Champion, said: “Overall, best buy rates are still rising, although we have heard from the Governor of the Bank of England, that we could be close to the top of base rate increase cycle. But hopefully further increases will still filter through for some time to come, due to increased competition between the savings providers.

“In particular, there’s a bit of a battle of the app-only providers occurring at the moment, in particular in the easy access best buy tables. While last month, Tandem and Zopa were battling it out for the top spot paying 3.05% and 2.95% respectively, today the top three accounts can only be opened via a mobile app, following the introduction of Chip, and the rates have ramped up. The top rate is now 3.4% from Chip, with Zopa paying 3.21% and Tandem 3.2%.

“The other two of our top five are online accounts, but they only allow limited access without penalty. Coventry is paying 3.1% and you can make six penalty free withdrawals a year and Paragon is also paying 3.1% but you can make just three penalty free withdrawals a year.”

Branch access and blended rates

Bowes said the top paying non app-only or restricted access easy access account is from Shawbrook Bank. This account can be opened online and is paying 3.06% but you can make as many withdrawals as you like.

“Let’s not forget the Yorkshire Building Society Rainy Day account which, not only can be opened in branch and by post as well as online, but is paying 3.35% on up to £5,000. Any amount above £5,000 will earn 2.85%, so the overall rate you receive will be blended.

“So, with restricted access, tiered and blended rates and top rates available only via a mobile app, it’s a bit of a minefield out there so you really need to choose your account carefully,” she warned.

However, she added that “now could be the time to dip your toe into app-banking” as mobile apps are “definitely becoming more prevalent”, although a number of providers offer the app as an additional way to open an account as opposed to the only way.”

However you bank, here are the top-paying, open-to-all savings accounts on the market right now:

Easy access accounts

3.4% Chip Instant Access Account – minimum deposit £1. Apply and access via mobile app or via QR code from the Chip website.

3.21% Zopa Smart Saver – minimum deposit £1. Apply and access via mobile app.

3.2% Tandem Instant Access Saver – minimum deposit £0. Apply and access via mobile app.

3.1% Coventry Building Society Limited Access Saver (Online, Issue 8) – minimum deposit £1. Apply and access online. Maximum of six easy access withdrawals per year. Additional withdrawals are allowed (including closure), subject to 50 days’ loss of interest.

3.1% Paragon Triple Access Savings Account (Issue 11) – minimum deposit £1. Apply and access online. If more than three withdrawals are made in a 12-month period, the rate will drop to 0.75% from the date of the fourth withdrawal, with the 12-month period resetting on the anniversary of the account opening date.

Notice accounts

3.55% Investec 90 Day Notice Saver – minimum deposit £5,000. Apply and access in branch or by post. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed.

3.5% Allica Bank 180 Day Notice Savings Account (Issue 1) – minimum deposit £10,000. Apply online or via mobile app. Access online, by phone, email or via mobile app. Withdrawals are subject to 180 days’ notice only; no earlier access is allowed.

3.46% Moneybox 120 Day Notice Savings Account (provided by Charter Savings Bank) – minimum deposit £1. Apply and access via mobile app. Withdrawals are subject to 120 days’ notice only; no earlier access is allowed.

3.44% BLME 90 Day Notice Account (Issue 5) – minimum deposit £1,000. Apply online. Access online or by email. Withdrawals are subject to 90 days’ notice only; no earlier access is allowed.

3.4% Allica Bank 95 Day Notice Personal Savings Account (Issue 1) – minimum deposit £10,000. Apply online or via mobile app. Access online, by phone, email or via mobile app. Withdrawals are subject to 95 days’ notice only; no earlier access is allowed.

One-year fixed term bonds

4.31% Al Rayan Bank 12 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

4.31% Smart Save 1 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.3% Atom Bank 1 Year Fixed Saver – minimum deposit £50. Apply via mobile app. No access within the term.

Two-year fixed term bonds

4.47% Al Rayan Bank 24 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

4.46% Smart Save 2 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.45% Atom Bank 2 Year Fixed Saver – minimum deposit £50. Apply via mobile app. No access within the term.

Three-year fixed term bonds

4.57% Al Rayan Bank 36 Month Fixed Term Deposit – minimum deposit £5,000. Apply and access via mobile app, online or by phone. No access within the term. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate.

4.46% Smart Save 3 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.45% Atom Bank 3 Year Fixed Saver – minimum deposit £50. Apply via mobile app. No access within the term.

Five-year fixed term bonds

4.51% Smart Save 5 Year Fixed Rate Saver – minimum deposit £10,000. Apply online. No access within the term.

4.5% Raisin UK 5 Year Fixed Term Deposit (provided by Işbank) – minimum deposit £1,000. Apply online. No access within the term.

4.45% Hampshire Trust Bank 5 Year Bond (Issue 28) ‒ minimum deposit £1. Apply online. No access within the term.

Easy access cash ISAs

3.01% Shawbrook Easy Access Cash ISA Account (Issue 32) – minimum deposit £1,000. Apply and access online. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

3% Cynergy Bank Online ISA (Issue 30) – minimum deposit £1. Apply and access online or by phone. Transfers in are allowed. This is a flexible ISA. This is not a portfolio ISA.

3% Coventry Building Society Limited Access ISA (Online, Issue 4) ‒ minimum deposit £1. Apply and access online. A maximum of six easy access withdrawals can be made each year. Any additional withdrawals in that year are subject to 50 days’ loss of interest on the amount withdrawn. Transfers in are allowed. This is a flexible ISA. This is not a portfolio ISA.

3% Harpenden Building Society Triple Access Cash ISA Account – minimum deposit £1. Apply and access in branch or by post. Maximum of three penalty free withdrawals per year. If there are four or more withdrawals per calendar year, the interest rate drops to 1.6%. This is not a flexible or portfolio ISA.

2.95% Newcastle Building Society Triple Access ISA (Issue 5) – minimum deposit £1. Apply and access in branch or online. Maximum of three penalty free withdrawals per year. If there are four or more withdrawals per calendar year, the interest rate will drop to 2%. Transfers in from other providers are accepted. This is a flexible ISA.

One-year fixed term cash ISAs

4.25% Virgin Money 1 Year Fixed Rate Cash Exclusive (Issue 4) – minimum deposit £1. Apply in branch or online. Withdrawals are allowed, subject to 60 days’ loss of interest. The maturity date is 31/01/2024. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. You need to have a current account with Virgin Money which was opened on or after 4 December 2019, or you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B such as a Signature Current Account.

4.06% Shawbrook Bank 1 Year Fixed Rate Cash ISA Bond (Issue 68) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4% Barclays 1 Year Flexible Cash ISA (Issue 36) – minimum deposit £1. Apply in branch. Transfers in are allowed. Up to three penalty-free withdrawals can be made within the term, with each withdrawal limited to a maximum of 10% of the account balance at the time the withdrawal is made. You can also close the account before the maturity date, subject to a charge equivalent to 90 days’ loss of interest. On maturity the account is transferred to a variable rate ISA. Transfers in are allowed. This is a flexible ISA. This is not a portfolio ISA.

Two-year fixed term cash ISAs

4.11% Shawbrook Bank 2 Year Fixed Rate Cash ISA Bond (Issue 67) – minimum deposit £1,000. Apply online. Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.11% Virgin Money 2 Year Fixed Rate Cash e-ISA (Issue 556) – minimum deposit £1. Apply online. Withdrawals are allowed, subject to 90 days’ loss of interest. The maturity date is 24/03/2025. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.

4.1% Gatehouse Bank 2 Year Fixed Term Woodland Cash ISA – minimum deposit £1,000. Withdrawals within the term will be subject to a reduction in profit of 180 days. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate. Transfers in are accepted. For every Green Saver account opened or renewed, a tree in a UK woodland is planted on your behalf.

Three-year fixed term cash ISAs

4.2% Gatehouse Bank 3 Year Fixed Term Woodland Cash ISA – minimum deposit £1,000. Withdrawals within the term will be subject to a reduction in profit of 270 days. The rate is not guaranteed in order to comply with Sharia Law the rates listed are an expected profit rate. Transfers in are accepted. For every Green Saver account opened or renewed, a tree in a UK woodland is planted on your behalf.

4.11% United Bank UK 3 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply in branch, by post, online or via mobile app. Access on closure or full transfer out only, subject to 270 days’ loss of interest. Transfers in accepted.

4.1% Close Brothers Savings 3 Year Fixed Rate Cash ISA ‒ minimum deposit £10,000. Apply online. Withdrawals on closure only, subject to an interest penalty. Transfers in are accepted.

Five-year fixed term cash ISAs

4.2% Gatehouse Bank 5 Year Fixed Term Woodland Cash ISA ‒ minimum deposit £1,000. Withdrawals within the term will be subject to a reduction in profit of 270 days. The rate is not guaranteed, in order to comply with Sharia Law the rates listed are an expected profit rate. Transfers in are accepted. For every Green Saver account opened or renewed, a tree in a UK woodland is planted on your behalf.

4.11% United Bank UK 5 Year Fixed Rate Cash ISA – minimum deposit £2,000. Apply in branch, by post, online or via mobile app. Access on closure or full transfer out only, subject to 365 days’ loss of interest. Transfers in accepted.

4% Progressive Building Society 5 Year Fixed Rate ISA Bond (Issue 4) – minimum deposit £500. Apply in branch or by post. Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA.