Moneyfacts Weekly Product News – 01.10.2020

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.

Masthaven Bank – 30 Month Flexible Term Saver

Masthaven Bank has made amendments to a selection of its savings products this week. These changes include a small rate reduction to its 30 Month Flexible Term Saver. Despite the cut, this remains a competitive choice, allowing savers to invest from as little as £500 and now paying 1.23% gross on anniversary. A monthly option is also available, paying 1.22% gross, which those looking to supplement their income in these uncertain times may be pleased to note. The account does not allow earlier access, however, further additions are available for 7-days from account opening via a nominated account, therefore careful planning would be advised. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.23% gross / 1.23% AER, payable on anniversary, monthly interest option of 1.22% gross / 1.23% AER available
• Notice / term: 30-months
• Minimum opening amount: £500
• Maximum investment amount: £250,000
• Access: Not permitted
• Further additions: Permitted within 7-days from account opening via a nominated account
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 18.

Cambridge Building Society – 2 Year Fixed Rate ISA (Issue 25)

Amongst various updates to its range of savings products, Cambridge Building Society has increased the rate payable on its 2 Year Fixed Rate ISA this week by 0.30%. Now paying 1.00% yearly, this account assumes a position in the top rate tables when compared against other ISAs with similar terms currently available. Investors who wish to use their tax-free ISA allowance and who are able to meet the minimum investment amount of £500 may be pleased to note that, unusually for the fixed ISA market, earlier access is permitted subject to a loss of interest penalty, which may be of interest. The account earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.00% gross / 1.00% AER, payable yearly
• Notice / term: Two years
• Minimum opening amount: £500
• Maximum investment amount: ISA allowance
• Access: Permitted subject to 180-day loss of interest penalty
• Further additions: Permitted during 2020-2021 tax year only
• Transfers in: Accepts cash or stocks and shares ISAs, Help to Buy ISAs, Innovative Finance ISAs and Lifetime ISAs (cash or stocks and shares) until 5.4.21
• Transfers out: Permitted subject to 180-day loss of interest penalty
• Opening account: By phone, by post and in branch
• Managing account: By phone, by post and in branch
• Other information: Minimum applicant age 16.

Yorkshire Building Society – Fixed Rate e-ISA to 31.10.21

After an increase of 0.10% this week, the Yorkshire Building Society one-year fixed rate e-ISA now pays 0.85% on maturity and secures a position in the top tables when compared to other ISAs with similar terms currently on offer. Those savers are looking to take advantage of their tax-free ISA allowance may be pleased to note that with this account they can do so from a minimum investment amount of £100. Further additions are permitted while the issue remains open, and subject to a loss of interest penalty, early access is available on closure of the account which may be appealing to some investors, particularly in these uncertain times. Overall the account earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 0.85% gross / 0.85% AER, payable on maturity
• Notice / term: 31.10.21
• Minimum opening amount: £100
• Maximum investment amount: ISA allowance
• Access: Permitted only on closure and subject to 60-day loss of interest
• Further additions: Permitted while issue remains open
• Transfers in: Accepts cash or stocks and shares ISAs, Innovative Finance ISAs, Lifetime ISAs (cash or stocks and shares) and APS ISAs (cash or stocks and shares).
• Transfers out: Permitted subject to 60-day loss of interest
• Opening account:  Online
• Managing account:  Online
• Other information: Minimum applicant age 16.

Lloyds Bank – Club Lloyds

In its latest review, Lloyds Bank has reduced the credit interest paid on its Club Lloyds account by up to 0.49% - however, despite this cut, the account still remains in the top half of the market for interest paying current accounts. This account also provides a competitive overdraft rate of 27.5% applicable after the £50 interest-free amount is exceeded, which also places this account in the top half of the market for current account borrowing and furthers its appeal. There is a £3.00 per month account fee in the event that the account is not funded with a minimum of £1,500 per month. There are various associated benefits available with the account, including Everyday Offers. On balance this earns an Outstanding Moneyfacts product rating.

Key product details:

• Credit interest/reward: Eligible for free, preferential access to savings accounts. £200 cashback on completing a qualifying mortgage with Lloyds. £100 for accounts switched using CASS
• Cashback on debit card purchases: Earn up to 15% cashback from selected retailers (if registered for online banking)
• Account fee: £3 per month, unless account is funding with £1,500 per month
• Credit interest: None
• Arranged overdraft: 27.5% EAR after £50 interest free amount
• Opening account: Online, by phone and in branch
• Managing account: Online, in branch, by phone, mobile app, post office and text alerts
• Other information: Minimum applicant age 18.