Earn more than 4.7% interest with this week’s best savings accounts
Meanwhile, new legislation is due to be introduced in July that will make financial products easier for the public to understand.
The impending Consumer Duty changes, to be brought in by financial watchdog the Financial Conduct Authority (FCA), are set to hold banks and building societies accountable for poor savings rates.
In the meantime, savers who want to earn more interest on their savings may want to consider switching providers.
Here are the best rates on offer this week, as analysed by Moneyfacts.
Chip pays the highest interest rate on easy access savings at 3.55%. The Chip app and a fee-free Chip Subscription are needed to open this account.
Aldermore’s Double Access Account Issue 1 also pays 3.55%, but the rate drops to 0.10% AER if you make more than two withdrawals per year. You need an initial deposit of at least £1,000 to open an account.
HSBC’s Online Bonus Saver pays 3.50% AER on balances between £1 and £10,000. Above this amount, an interest rate of 2% AER is applied to that portion of the balance. While an unlimited number of withdrawals are permitted from the account, the standard rate of interest (currently 1.3%) will be paid for any month in which you make a withdrawal.
Other easy access options include Family Building Society’s Online Saver (5) and GB Bank’s Raisin UK Easy Access Account which both pay 3.4%.
Fixed rate bonds
Al Rayan Bank continues to top Moneyfacts’ one, two and three year fixed rate bond charts this week.
Its 12-Month Fixed Term Deposit pays an expected profit rate of 4.62% AER, while its 24-Month and 36-Month Fixed Term Deposits now pay 4.72% AER and 4.75% respectively.
All of Al Rayan Bank’s fixed rate bonds require minimum deposits of at least £5,000, however you’ll need to carefully consider your opening amount as you won’t be able to add to or withdraw from it.
Al Rayan faces competition from Investec Bank, Atom Bank, and Close Brothers Savings which have all increased selected fixed rates this week.
For five-year accounts, Atom Bank now takes top position with its 5-Year Fixed Saver with a rate of 4.65% AER. You’ll need to have the Atom Bank app downloaded and a minimum deposit of £50 in order to open this account. Further additions are permitted for one week from account opening but, as with most fixed bonds, you won’t be able to make any withdrawals.
The best savings account requiring 30 days or less notice is from RCI Bank UK’s E-Volve Savings 14-Day Notice Account which pays 3.3%.
You need a £1,000 initial deposit and you can make further additions to this amount via another nominated account, and gain access to your cash by providing 14 days’ notice.
Cynergy Bank’s Online Notice Saver (Issue 2) offers the best interest rate if you’re willing to provide 60 days or less notice to make a withdrawal.
You can open this notice account online with a minimum deposit of £500 and receive 3.55% AER on anniversary.
In order to use online banking, however, you’ll need access to the Cynergy Bank Authenticator App or Digipass. While further additions are allowed, you’ll need to serve 35 days’ notice before making a withdrawal.
For notice accounts of 90 days or less, Bank of London and The Middle East (BLME) has increased the rate on its 90 Day Notice Account (Issue 5) by 0.20% AER and now pays an expected profit rate of 3.85% AER quarterly.
You’ll need £10,000 as a minimum deposit in order to open this account online. As the name suggests, you’ll need to provide 90 days’ notice for withdrawals.