Aldermore increases savings rates | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/06/2021

Aldermore has increased the rate on its 1 Year Fixed Rate Account from 0.85% to 1.00% gross. This is the first time in nearly six months that savers can get a rate of 1.00% on a one year fixed rate account. The last time 1.00% was available was 11 January 2021 from Ahli United Bank (UK) plc.


Aldermore now tops the best one-year fixed rate bonds chart, with a clear 0.15% between them and the next most competitive rates from Allica Bank and Habib Bank Zurich plc. Those wanting to open this savings account with Aldermore will need a £1,000 opening deposit. The account can only be opened and operated online. Savers can choose to receive interest on maturity or monthly. Further additions are allowed for 14 days from account opening. Early access of funds is not permitted until the term ends.
Habib Bank Zurich plc and Allica Bank offer the next-best fixed rate for 12 months. The HBZ Sirat eDeposit (Islamic Fixed Term Account) from Habib Bank has an expected profit rate of 0.85% with profit paid on maturity. The account has a minimum deposit of £5,000 and can be opened online and then operated by post. Further additions are allowed within 30 days of account opening. Early access of funds is not permitted until the term ends. The Fixed-Term Personal Savings Account (Issue 13) from Allica Bank also has a rate of 0.85% and this is paid on maturity. The account has a minimum opening deposit of £1,000. The account can be opened and operated online only. Further additions are allowed within 14 days of account opening. Early access of funds is not permitted until the term ends.

What other savings rate increases have Aldermore made?

Aldermore has increased rates across its one-, two- and three-year fixed rate bonds and on its one-year fixed rate ISA. As a result, it offers competitive savings rates in each of these categories: 

Is the start of savings rates rising?

Much beleaguered savers will now be hoping the move by Aldermore triggers more banks and building societies to increase their savings rates. Savers may still want to act promptly to get these new higher rates as demand may quickly outstrip supply.


Rachel Springall, personal finance expert at Moneyfacts.co.uk, said: “It’s great to see some much-needed competition enter the one-year fixed rate bond arena after months of rate cuts seeing average rates fall to record lows. Challenger banks have been making some positive changes to their ranges in recent weeks and these latest deals will no doubt spark interest from savers looking for a promising return. This type of movement can lead to more competition but as with any deal, there is no guarantee they will last on the shelf for long and could be snapped up quickly, so savers may not want to wait around too long to take advantage.”

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

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