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RCI drops rate on Freedom Savings Account

Written by: Emma Lunn
RCI Bank is cutting the rate on its easy access savings account from 1.42 per cent to 1.35 per cent.

The UK-based financial arm of car manufacturer Renault has emailed customers to inform them it’s changing the rate on its Freedom Savings Account to 1.35 per cent.

The email said: “As an existing customer, the new rate of 1.35 per cent AER gross variable will apply to your account from the 27th of September 2019. This is still one of the best rates in the easy access market today.

“Your Freedom Savings Account offers easy access savings with a variable rate. As a reminder, you can open as many Freedom Savings Accounts as you like. Your Freedom Savings Account(s) can also be closed, without penalty, at any time.”

RCI previously upped the rate on the account to 1.37 per cent in October 2018 and then to 1.42 per cent in December 2018. The rate change applied to savers already holding the account, as well as new customers – but the same rule also applies when the rate is decreased.

Cutting the rate to 1.35 per cent means the Freedom savings account is beaten by a number of easy access accounts. Cynergy Bank and Marcus by Goldman Sachs both pay 1.5 per cent AER, while the AA Member Saver (issues 7) pays 1.37 per cent and the AA Easy Saver (issue 11) pays 1.36 per cent.

RCI Bank secured a UK banking licence in March 2019, meaning customers’ deposits are now protected by the UK’s Financial Services Compensation Scheme (FSCS).

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