Moneyfacts Weekly Product News – 30.07.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 30/07/2020

The Moneyfacts Weekly Product News is a round-up of the latest products or rate changes to hit the consumer finance market this week. The deals are available right now, but may be subject to change. Find the best product for you.

Savings

United Trust Bank – UTB 1 Year Bond

This week, United Trust Bank has made increases on a selection of its UTB fixed rate bonds. The UTB 1 Year Bond has received an increase of 0.10% and now pays 1.00% on anniversary. This has improved on an already competitive offering, which maintains a position in the top 10 when compared against other bonds with similar terms that are currently available. As is generally the case within the fixed account market, earlier access and further additions are not permitted, so careful planning is advised as investors will need to feel comfortable securing their money away for the one-year term. This account earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.00% gross / 1.00% AER, payable on anniversary
• Notice / term: One year
• Minimum opening amount: £5,000
• Maximum investment amount: £1,000,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: By phone and by post
• Other information: Minimum applicant age 18.

Gatehouse Bank – 2 Year Fixed Term Cash ISA

Gatehouse Bank has made various amendments this week, which include a reduction in rate on its two-year fixed term ISA. Following the reduction of 0.15%, this account now pays 0.80% on anniversary, but retains a position in the top rate tables when compared to other similar fixed ISAs currently on offer in the market. Those savers who are looking to take full advantage of their ISA allowance may therefore find this a competitive option. A further positive feature is that, unusually for the fixed rate ISA sector, earlier access is permitted, subject to a loss of interest penalty. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.80% gross / 0.80% AER, payable on anniversary
• Notice / term: Two years
• Minimum opening amount: £1,000
• Maximum investment amount: ISA allowance
• Access: Permitted subject to a 180-day loss of interest penalty
• Further additions: Not permitted
• Transfers in: Accepts cash and stocks and shares ISAs
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 18, Sharia’a-compliant account – rates shown are expected profit rate.

 

Mortgages

HSBC – Two-year fixed rate mortgage, 90% loan-to-value

This week, HSBC has made updates to a selection of its mortgage products, including an increase of 0.15% to its two-year 90% product, which has increased from 2.54% to 2.69%. Lower rates are available from elsewhere within this currently rather limited sector of the market, however, this particular product carries no product fee and borrowers will also benefit from an incentive package of a free valuation for all, with those remortgaging also able to benefit from free legal fees. Overall, despite the rate increase, this remains an attractive option and earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 2.69% fixed rate to 30.9.22
• Product fee: None
• Maximum loan-to-value: 90%
• Available to: All borrower types
• Incentives: Free valuation for all borrowers, and for those remortgaging free legal fees
• Flexible features: Allows overpayments
• Lending area: Great Britain and Northern Ireland.

Banking

The Co-operative Bank – Current Account with Everyday Rewards

The Co-operative Bank will reduce the cashback that consumers can earn on its Current Account with Everyday Rewards from £5 to £2.50 gross from 1 August. At the same time, the maximum amount payable on debit card purchases has increased from £1.50 to £3.00, although the 5p per transaction remains unchanged. Due to the changes, the overall cashback customers can earn each month has dropped from £5.50 to £5. As it stands, the deal continues to offer a competitive reward compared to its peers and also has a competitive overdraft tariff. This account earns an Excellent Moneyfacts product rating.

Key product details:
• Credit interest/reward: £2.50 gross / £2 net, when £800 per month paid in and four different direct debit mandates held, account must remain in credit. Customers must have logged into Online/Mobile Banking once per month and opted for paperless statements. Rewards paid into a nominated account each month or can be donated to selected charities.
• Cashback on debit card purchases: Eligible for Everyday Rewards: Earn 5p every time debit card used, up to a maximum of £3.00 per month. Rewards paid into nominated account each month or can be donated to selected charities.
• Account fee: None
• Credit interest: None
• Arranged overdraft: 18.9% EAR
• Unarranged overdraft: 18.9% EAR
• Opening account: Online
• Managing account: Online, in branch, by phone, by post, 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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