Savings News

Competition at the top of the easy access savings chart is increasing, with the top rate rising by 0.08% in just a few weeks.

At the beginning of the month the top easy access savings account rate stood at 0.67% AER, whereas now savers can earn 0.75% AER on Aldermore’s Double Access Account Issue 1.

This account requires a £1,000 minimum deposit but does come with the catch of savers only being allowed to make two withdrawals per annum, with a lower interest rate being paid if more are made.

The next two best rates in this chart have also increased over the last few weeks. From today, Investec Bank plc pays 0.71% AER on its Online Flexi Saver, which requires a £5,000 minimum deposit to open and allows unlimited withdrawals.

Meanwhile, Cynergy Bank pays 0.70% AER on its Online Easy Access Account (Issue 43), which includes a 0.40% bonus for 12 months. A minimum deposit of just £1 is needed to open this account and unlimited withdrawals can be made via a nominated account.

As well as this, at the beginning of the week the average easy access savings rate increased from 0.19% to 0.20%, the highest it has stood in 12 months with it lasting standing at 0.20% on 30 November 2020.

Cynergy Bank caught many savers’ attention this week when it increased the rate on its easy access savings account to now top the chart with a rate of 0.70% AER. This is one of the highest easy access savings rates that has been available for 12 months and may be a sign that more competitive rates may start to become available in this chart. There were also positive signs in the fixed rate bond charts this week with new higher rates now available on both three and one year fixed rate bonds.

In a year that has seen average easy access savings rates fall to their lowest levels on record, Cynergy Bank’s rate rise on its account this week has caught many savers’ attention, offering a chart-topping 0.70% AER.

Cynergy Bank pays 0.70% AER, which includes a 0.40% bonus for 12 months, on its Online Easy Access Account (Issue 43). This is 0.20% higher than the top easy access savings account rate that was available six months ago, when the top rate stood at 0.50% AER on 28 May 2021, which was offered by Atom Bank, ICICI Bank UK and Virgin Money.

Although the increase in the top easy access savings rate may be welcomed by savers, a year ago they could get a higher rate in the chart. On 27 November 2020 the top rate stood at 0.75% AER, which was available from ICICI Bank UK.

A number of banks and building societies have increased rates on their savings accounts this week. Notably Zenith Bank (UK) Ltd increased the rate on its one and three year fixed rate bonds, resulting in the three year version now one of four accounts paying the top rate in this chart. Masthaven Bank also increased the rate on its one year fixed rate bond during the week, resulting in it being among five accounts paying the top one year bond rate.