Moneyfacts Weekly Product News – 24.09.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 24/09/2020

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market. All the deals highlighted are available now but are subject to change.

Savings

Zopa – 1 Year Fixed Term Savings

This week sees Zopa increase the rates payable on its Fixed Term Deposit products. The 1 Year Fixed Term Savings option has received an increase of 0.08% and now pays 1.28% monthly. The account cements its position within the top 10 when compared to other accounts with similar terms and could be attractive to savers looking to supplement their monthly income. Those able to meet the minimum investment of £1,000 may be pleased to note that while early access is not permitted, further additions are available within 14 days of account opening, therefore careful planning is advised. On balance, the deal earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.28% gross / 1.29% AER, payable monthly
  • Notice / term: One year
  • Minimum opening amount: £1,000
  • Maximum investment amount: £250,000
  • Access: Not permitted
  • Further additions: Permitted within 14-days of account opening
  • Opening account: Online
  • Managing account: Online and via its app
  • Other information: Minimum applicant age 18.

 

Tandem Bank – Tandem 2 Year Fixed Saver

Tandem Bank has increased the rate on its 2 Year Fixed Saver account by a substantial 0.71% this week, as well as increasing the rates on its other Fixed Saver accounts. Now paying 1.36% on anniversary, this account assumes a position in the top rate tables when compared against other bonds with similar terms currently available. As is common in the fixed rate market, neither early access nor further additions are permitted, however, savers who are happy to secure their funds away for the two-year term may be enticed by the attractive return. The account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.36% gross / 1.36% AER, payable on anniversary
  • Notice / term: Two years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £2,500,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: By phone
  • Other information: Minimum applicant age 18, 14-days from account opening to make initial deposit.

 

Cynergy Bank – Online ISA (Issue 5)

After an increase of 0.10% this week, the Cynergy Bank Online ISA now pays 1.00% yearly which secures this account the lead position when compared to other variable rate ISAs currently available. Those savers who wish to utilise their tax-free ISA allowance may be pleased to note that this account has a low minimum investment amount of £1. Withdrawals and further additions are available, which may be appealing to some investors, particularly in these uncertain times. Savers are advised that a Cynergy Bank Authenticator app or Digipass is required to open and operate the account. Overall, this ISA secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.00% gross / 1.00% AER, payable yearly (variable rate)
  • Notice / term: None
  • Minimum opening amount: £1
  • Maximum investment amount: ISA allowance
  • Access: Permitted
  • Further additions: Permitted
  • Transfers in: Only permitted on account opening. Accepts cash ISAs.
  • Transfers out: Permitted
  • Opening account:  Online
  • Managing account:  Online
  • Other information: Minimum applicant age 18

 

Mortgages

Digital Mortgages by Atom Bank – Two-year fixed rate mortgage, 60% loan-to-value

Digital Mortgages by Atom Bank made various amendments to its range this week, including rate reductions of up to 0.20% across selected remortgage products. The two-year fixed rate at 60% loan-to-value sees a reduction of 0.18% is now priced at 1.34% and continues to offer borrowers a comprehensive incentive package of a free valuation and free legal fees. Whilst there are slightly lower rates available in this sector of the intermediary market, those deals tend to carry large fees. With no product fee payable, this mortgage could appeal to those looking to keep any financial outlay to secure a new deal to a minimum. On balance, this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.34% fixed rate for two years
  • Product fee: None
  • Maximum loan-to-value: 60%
  • Available to: Remortgage customers only
  • Incentives: Free valuation and free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland. Available via selected intermediaries only.

 

West Brom Building Society – Two-year fixed rate mortgage, 60% loan-to-value

As well as launching a new deal for house purchases this week, West Brom Building Society has increased selected rates within its range by up to 0.10%. The two-year fixed rate at 60% loan-to-value sees an uplift of 0.05% and is now priced at 1.39%. The deal continues to carry a £999 product fee, and also retains its generous incentive package of a free valuation and £500 cashback. Therefore, despite the small rate increase, this combination of features ensures that this deal earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.39% fixed rate for two years
  • Product fee: £999
  • Maximum loan-to-value: 60%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

Banking

TSB – Spend & Save

TSB has launched its new Spend & Save account which carries no monthly fee and customers could earn £5 per month if they make 30 or more debit card transactions through the account for the first six months after opening the account. Other benefits of the account include tools which may help customers to manage their money, such as a “save the pennies” feature whereby each debit card payment is rounded up to the nearest pound, with the extra pennies then being moved into an associated savings pot and also an auto-balancer option where a minimum limit can be set on the account – if the balance then falls below that limit, funds will automatically be moved over to the account from the chosen savings pot. The arranged overdraft rate of 39.9% sits in the bottom half of the market compared to other accounts, although the overdraft interest is waived for three months for switched accounts. As it stands, the deal continues to offer a competitive reward to those consumers who take full advantage of the benefits and bear in mind that the £5 per month cashback offer ends after six months, seeing it earn an Excellent Moneyfacts product rating.

Key product details:

  • Credit interest/reward: Eligible for linked savings pots. £150 cashback on completion of remortgage application when account is funded with at least £500 per month
  • Cashback on debit card purchases: Earn £5 cashback a month for six months when 30 or more debit card payments are made.
  • Account fee: None
  • Credit interest: None
  • Arranged overdraft: 39.9% EAR
  • Unarranged overdraft: 39.9% EAR
  • Opening account: Online and in branch
  • Managing account: Online, in branch, by phone, mobile app, post office and text alerts
  • Other information: Minimum applicant age 18.
Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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