Moneyfacts Weekly Product News – 22.10.20

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

DF Capital – 2 Year Fixed Rate Deposit (Issue 1)

Launched this week is the new 2 Year Fixed Rate Deposit account from DF Capital, replacing its one-year version. Paying a competitive rate of 1.23% on maturity, this account takes a position in the top 10 when compared to other bonds with similar terms currently on offer. As may be expected in this sector of the market, early access is not permitted, however, further additions within 14 days of account opening are available, which could be viewed as a plus by some investors. The account is operated via secure email, rather than an online banking portal, which some savers may wish to note. On balance, this account earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.23% gross / 1.23% AER, payable on maturity
• Notice / term: Two years
• Minimum opening amount: £1,000
• Maximum investment amount: £85,000
• Access: Not permitted
• Further additions: Permitted within 14 days of account opening
• Opening account: Online
• Managing account: Online (via secure email, not an online banking portal)
• Other information: Minimum applicant age 18.

Loughborough Building Society – 1 Year Fixed Rate Cash ISA Issue 11

Also launched this week is the 1 Year Fixed Rate Cash ISA from Loughborough Building Society. Paying 0.80% 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 £10,000 may be pleased to note that 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: 0.80% gross / 0.80% AER, payable yearly
• Notice / term: 31.12.2021
• Minimum opening amount: £10,000
• Maximum investment amount: ISA allowance
• Access: Permitted on closure subject to a 90-day loss of interest penalty
• Further additions: Permitted while the issue remains open
• Transfers in: Accepts cash ISAs
• Transfers out: Permitted subject to a 90-day loss of interest penalty
• Opening account: By post and in branch
• Managing account: By post and in branch
• Other information: Minimum applicant age 16.

HSBC – Five-year fixed rate mortgage, 60% loan-to-value

In the latest update to its range, HSBC has amended a number of both fixed and variable rates. One product that sees a rate reduction of 0.20% this week is the five-year fixed rate at 60% loan-to-value. Now priced at 1.44% to 31.12.25, this is now one of the lowest rates available in this sector of the market and may appeal to those looking to lock into a stable rate for the longer-term. The product carries a reasonable fee of £999 and borrowers can also benefit from a comprehensive incentive package of a free valuation to all, while those remortgaging can also benefit from free legal fees. On balance, this product earns an Outstanding Moneyfacts product rating.

Key product details:

• Rate: 1.44% fixed rate to 31.12.25
• Product fee: £999
• Maximum loan-to-value: 60%
• Available to: All borrower types
• Incentives: Free valuation, and for those remortgaging free legal fees
• Flexible features: Allows overpayments
• Lending area: Great Britain and Northern Ireland.

NatWest – Select Account

NatWest has launched a new £125 switching incentive on a selection of its current accounts, including the Select Account. This addition has likely further increased the appeal of this particular account to those looking to switch, as not only does this carry no monthly fee, but another feature that may be particularly interesting to some customers is the free Overdraft Control option, which consumers could utilise to avoid unarranged overdraft costs. On balance, it earns an Excellent Moneyfacts product rating.

Key product details:

• Credit interest/reward: £125 for accounts switched using the Current Account Switch Service. Free 24/7 Emergency Cash Service to withdraw up to £300 for online and telephone banking customers, £60 if not
• Cashback on debit card purchases: None
• Account fee: None
• Credit interest: None
• Arranged overdraft: 39.49% EAR
• 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.