Bank raises interest rates on ‘tempting’ accounts, which is good news for savers.
A new slew of savings accounts will have higher interest rates, according to a money comparison website, which has highlighted the three most recent options available.
For a variety of reasons, many banks have begun to raise their savings account interest rates in the new year.
Savings incentives are also on the rise, as people are encouraged to take advantage of deals while they can.
Moneyfacts.co.uk, a finance website, shared their top picks for rate changes to hit the consumer finance market this week, all of which received a Moneyfacts Excellent rating.
Atom Bank has increased the rates on their fixed savers accounts by up to 0.55 percent.
Following the implementation of these increases, their two-year product will have a top interest rate of 1.60 percent.
The two-year product will be raised by 0.23 percent, ensuring its competitiveness against other bonds with similar terms.
“There is also a monthly interest option on offer, which could further tempt those looking to supplement their monthly income,” said Eleanor Williams, a resident finance expert at Moneyfacts.
“Early access to funds is not permitted, as is common in the fixed bond market, but additional additions are permitted for one week after account opening.”
This account has a minimum opening balance of £50 and a maximum balance of £100,000, with no access permitted during the two-year term.
Oxbury Bank is a financial institution in the United Kingdom.
Oxbury Bank, the market leader in Notice Accounts, recently reduced their rate while remaining at the top of the market.
Ms Williams notes that the account currently pays one percent monthly interest, which “could tempt savers.”
This account requires savers to give 95 days notice before they can access their funds, giving them some flexibility.
The minimum and maximum investment amounts are £1000 and £500,000, respectively.
This week, Close Brothers, like Atom Bank, raised rates on a variety of their products.
The fixed rate cash ISA, which pays 0.90 percent interest on maturity, is currently their best product.
The ISA’s interest rate was raised by 0.05 percent, and it now offers more flexibility than traditional fixed or notice accounts.
Furthermore, the ISA component of this account may be enough to persuade many savers to take advantage of it.
All interest earned in an ISA is tax-free, but savers should be cautious.
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