Moneyfacts Weekly Product News – 08.10.2020

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

Brief product details, together with independent Moneyfacts analysis, can be used with confidence in your finance sections. You can select one or two products to sit beside a relevant story or use them all as a general feature provided they are sourced to our expert at Moneyfacts.co.uk.

This week, our resident Finance Expert, Eleanor Williams, has analysed the following deals, along with their perks, of note:

The Melton Building Society – Online Fixed Rate Savings

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“In its latest update, The Melton Building Society has increased the rate payable on its two-year fixed rate account by a significant 0.40% to now pay 1.40% gross monthly. As a result, this account assumes the top position when compared against other bonds with similar terms currently available. Investors who wish to enhance their monthly income may be enticed by the attractive return this offers, however, as is common in the fixed rate market, neither early access nor further additions are available, so careful planning at the outset is a must. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.40% gross / 1.41% AER, payable monthly
• Notice / term: 16.12.22
• Minimum opening amount: £1,000
• Maximum investment amount: £250,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 16.

Secure Trust Bank – 1 Year Fixed Rate Cash ISA

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“Receiving an increase of 0.05% this week, the Secure Trust Bank one-year fixed rate cash ISA improves on its position in the top rate tables when compared to other ISAs with similar terms currently on offer. Now paying 0.91% yearly, those savers who 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 £1,000. Further additions are permitted within 30 days of account opening with a minimum addition of £1,000, 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: 0.91% gross / 0.91% AER, payable yearly
• Notice / term: 18.11.21
• Minimum opening amount: £1,000
• Maximum investment amount: ISA allowance
• Access: Permitted only on closure and subject to a 90-day loss of interest penalty
• Further additions: Permitted within 30 days of account opening, minimum addition £1,000
• Transfers in: Accepts cash ISAs
• Transfers out: Permitted subject to a 90-day loss of interest penalty
• Opening account: Online
• Managing account: Online and by phone
• Other information: Minimum applicant age 18.

Nationwide Building Society – Two-year fixed rate mortgage, 90% loan-to-value

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“This week has seen Nationwide Building Society make various rate increases across selected deals in its range, which has included a rate increase of 0.25% being applied to the two-year fixed rate deal at 90% loan-to-value for first-time buyers. Now priced at 3.74% for two years, the deal carries no fee and also offers a generous incentive package of a free valuation and £500 cashback, which may be attractive to those looking to keep any set-up costs to a minimum. In this sector of the market, despite the increase in rate, this combination of features ensures that this deal maintains a position in the top tables and earns an Outstanding Moneyfacts product rating.”

Key product details:

• Rate: 3.74% fixed rate for two years
• Product fee: None
• Maximum loan-to-value: 90%
• Available to: First-time buyers
• Incentives: Free valuation and £500 cashback
• Flexible features: Allows overpayments and underpayments (subject to overpayments previously having been made)
• Lending area: Great Britain and Northern Ireland (excludes Scilly Isles).