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Battle to the top: Easy access rates hit 4.1% as one-year bonds rise to 5.7%

Paloma Kubiak
Written By:
Paloma Kubiak

Savers can now earn 4.1% AER on a true easy access account with a digital challenger. If you’re looking to fix your cash, you can now get 5.70% AER on a one-year bond.

The Tandem Instant Access Saver pays 4.10% AER / 4.03% gross, but to get this rate, you do need to click an extra tab.

This is because it has an underlying rate of 3.75% AER, but offers a top-up rate of 0.35% AER.

As it can only be opened and managed online (no minimum deposit required), once you set up the account, there will be a tab asking if you want to apply the top up rate. Once you click through, the full 4.10% AER will be applied to your cash.

Now, the great news about the Tandem account is that it is truly easy access with no limits on the number of times you can take out your cash, or an interest rate penalty on subsequent withdrawals.

By comparison, competitors in the best buy table for easy access accounts include Principality’s Online Double Access (Issue 2) account paying 4.01% AER. As its name suggests, savers can only access their cash on only two occasions in a calendar year, with closure counting as a withdrawal.

Previous high-flyer Coventry Building Society offered 4% AER on its Four Access Account, with any withdrawals above the four permitted resulting in a 50-day loss of interest penalty.

Alternatively, savers can opt for Sainsbury’s Bank Defined Access Saver (Issue 45) paying 4.01% AER on a minimum £1,000. It allows up to three easy access withdrawals each year. A subsequent withdrawal will see the rate drop to 1% for the remainder of the year.

According to Savings Champion data, fintech firm Chip also makes the top tables with its Instant Access Account paying 4% AER on £1, mirroring Raisin’s 4% AER provided by GB Bank, though this account requires a £1,000 minimum deposit.

One-year bonds climb to 5.7% AER

Earlier this week YourMoney.com reported that one-year savings bonds had breached 5.5% AER interest.

However, today they’ve climbed further to 5.7% AER offered via the Raisin savings platform, provided by Ahli United Bank. It can be opened and managed online with a minimum £1,000 deposit.

Alternatively, Savings Champion data revealed SmartSave comes in close second with its 1 Year Fixed Rate Saver paying 5.57% AER on a minimum £10,000.

In third place is OakNorth Bank paying 5.56% AER on its 12 Months Fixed Term Savings Account on a minimum £1.

Related: Access denied: Why some easy access savings accounts aren’t as ‘easy’ as you think