Savers see ‘substantial’ interest rate increases as new accounts are launched – act now

Finance: Expert discusses impact of inflation on a savings account

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Savings accounts are regularly having their rates boosted by banks in a bid to entice new customers. This comes even as the Bank of England keeps the base rate at all time lows and inflation worries loom.

Today, Moneyfacts.co.uk released its latest “Pick of the Week” which showcases the best rates and deals available to UK savers.

Two savings products were highlighted by Eleanor Williams, a Finance Expert at Moneyfacts.co.uk, who noted “substantial” raises have been seen.

The first deal comes from Atom Bank, which has boosted its two Year Fixed Saver rate.

Ms Williams reviewed the product: “This week, Atom Bank has increased the rate payable on its two Year Fixed Saver account.

“Rising by a substantial 0.93 percent to 1.43 percent payable on anniversary, this increase has enabled the deal to claim a position within the top rate table for its term.

“Savers who are hoping to supplement their income may find the monthly interest option appealing.

“Early access may not be permitted, however, savers are able to make further additions for one week from account opening.

“Overall, the account earns an Excellent Moneyfacts product rating.”

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On top of this, Tandem Bank has increased the rate on its one Year Fixed Rate Deposit account this week to 1.31 percent, allowing the account to take the “lead position” within the 12-month fixed term market.

Ms Williams continued: “Savers who are happy to lock away their cash for a year could be drawn to the competitive return but must ensure they can commit at the outset as early access is not permitted on this account.

“However, further additions can be made within 14-days of the account opening, which, with careful planning, could be a plus for some investors.

“Overall, the account receives an Excellent Moneyfacts product rating and a position in our top rate tables.”

While many banks are increasing rates on existing accounts, others are launching entirely new deals.

Today, Castle Trust Bank launched its first savings account to the public, a two year online Fixed Rate e-Saver Account, with an interest rate of 1.25 percent AER.

New customers can apply for this account via the bank’s website, while existing customers can also apply through their Self Service Portal account, or via the bank’s mobile app available from the Apple App Store and Google Play.

New customers will be required to open a Self Service Portal account as part of the application process, which provides them with a quick way to manage their money online.

The bank also announced it expects to extend their range of online fixed rate savings accounts, to include ISAs, over the next few months.

Martin Bischoff, the CEO at Castle Trust Bank, commented: “Since Castle Trust’s conversion to a bank in June 2020, we’ve continued to provide competitive fixed rate savings account options to our existing customers.

“I’m delighted that we’ve launched online fixed rate savings accounts to the general public.

“It’s another example of Castle Trust Bank’s ambitious plans for continued growth in the savings, specialist property lending and retail finance markets.”

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