One-year bond rates climb past the 2% mark
The digital bank has launched a one-year bond paying 2.05% gross/AER (minimum £50), the highest rate seen for almost two and a half years.
It pips the offering by Sharia-compliant Gatehouse Bank which last month raised the rate on its one-year fixed-term deposit account to 2%.
Analysis by independent savings advice site, Savings Champion, reveals that best buy one-year bonds are up 46% since the low point in October 2016, after the base rate cut earlier in August.
Anna Bowes, director at Savings Champion, said: “Although this bond won’t be for everyone, as you have to apply via a mobile app, it is really encouraging to see Atom Bank pushing one-year fixed rate bonds back above 2%.
“We hope that other providers will respond to this challenge – pushing rates up further still.”
Atom Bank also sits at the top of the best buy table for its two-year bond offering – 2.15%, but when it comes to the three year tables, Gatehouse Bank pays an expected profit rate of 2.33% on a minimum of £1,000.
Related: See YourMoney.com’s ‘Should I entrust foreign banks with my savings?’ and Market-leading Sharia savings accounts: should you consider them? for more information.