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Savers can earn 2.6% on a one-year bond

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The top rate for fixing your money for a year has risen to 2.6%, up from 2.4% just last week.

Savers can open the Atom Bank 1 Year Fixed Saver with £50 where they can earn 2.6% AER. As this is a digital challenger, the account can only be opened and managed via the Atom Bank app.

Just last week, the Investec Fixed Rate Saver led the best buy table in the one-year bond product category as it paid 2.4%.

But since then, a number of providers have beaten Investec’s offering, according to Savings Champion data:

  • Cynergy Bank 1 year Fixed Rate Bond pays 2.57% AER (minimum £10,000)
  • Raisin 1 Year Fixed Term Deposit (provided by Ahli United Bank) pays 2.55% AER (minimum £1,000)
  • Oxbury 1 Year Bond Account Fixed Rate (Issue 13) offers 2.51% AER (minimum £1,000)
  • United Trust Bank 1 Year Bond offers 2.45% (minimum £5,000).

The increase in rates across savings accounts follow the Bank of England’s four successive increases in the base rate.

According to consensus, the Bank of England is expected to raise the base rate further at the next meeting tonight, with minutes of the meeting published tomorrow (16 June). It is expected to rise by at least 25bps, taking the rate to 1.25%.

If the base rate does increase, we would expect to see savings rates also rise, though the speed at which this will pass to savers may vary, and the full hike may not be passed on either.

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