However, savers need a minimum deposit of £5,000 to open the account, and if the balance in the account drops below £5,000, the interest rate falls to a paltry 0.1% AER.
Interest is calculated daily at the interest rate for the balance in the account at the end of that day, and paid annually on the anniversary of your initial deposit.
A £5,000 deposit would earn £225 interest over a year.
The savings account is the latest in a long line of ‘easy-access’ accounts with attractive headline rates but small print that may make the account less appealing.
However, as long as you have £5,000 or more in the account, you will receive the 4.5% interest rate for the whole balance.
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This interest rate is variable – Charter can change it at any time, although it will give savers two weeks’ notice if the rate decreases. The 0.1% rate for balances below £5,000 is fixed.
You can choose to have your interest paid into your Easy Access – Issue 53 Account, another Charter Savings Bank account held by you or your nominated account.
Andrew Hagger of MoneyComms said: “It’s a reasonable rate as long as you understand the minimum £5,000 condition. There are better rates to be had at the moment, but many also come with restrictions – e.g. Oxbury Bank 4.87% but minimum £25k, Monument Bank 4.81% but minimum £25k, Coventry Building Society 4.81% but only three withdrawals permitted.
“The best ‘clean’ or no-strings saver is probably Ford Money Flexible Saver at 4.75% – open with £1 and no withdrawal restrictions or bonus element – it’s becoming increasingly tricky to find a ‘no-catch’ easy-access savings account.”
