Savers can now get 2.56% on a one-year deal
The top one-year savings product pays 2.36%, but here’s how to boost it to 2.56%.
Kent Reliance offers savers 2.36% when tying up their money for one-year.
But by opening this account via the Hargreaves Lansdown Active Savings platform – a cash savings hub – savers can boost the rate to 2.56% once cashback on the deal is factored in.
This is the highest rate available in over five years, according to Hargreaves Lansdown.
Here are the cashback details for Kent Reliance’s offering via the platform:
|Rate||Deposit||Cashback||Effective Rate + cashback|
Tom Higham, head of HL Active Savings, said: “The additional reward for giving up access to your savings is increasing, and for 12-month fixes it now stands at 0.99%. This is the additional interest earned by taking out the top 12-month, over the top easy access (no strings attached) rate.
“A little over six months ago this additional reward for fixing for a year was 0.50%. What this shows is that banks have been relatively quick to pass on rate increases to their fixed term products but are moving much slower on easy access repricing.
“By using the current cash back offer on Active Savings you can increase the best 12-month rate available to 2.56% on a £10,000 deposit. Such rates have not been seen for a very long time.”
The Bank of England base rate was increased to 1% in May and is expected to hit 2% by the end of this year, and near 2.5% by mid-2023 before falling back.
Higham added: “Leaving your savings in your current account or high street bank savings account is now costing you hundreds of pounds per £10,000 of savings. With inflation (CPI) at 9% and forecast to rise still, it’s more important than ever to offset what you can by getting your cash savings working harder.”