Market-Leading Account Enters The Savings Chart | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 14/10/2020

Competition within the savings chart has increased today, with DF Capital now listing within our notice account and one year fixed rate bond charts, offering a market-leading notice account rate and a highly competitive bond rate.

DF Capital has entered the top of the notice chart, offering a market-leading rate of 1.11% gross monthly on its 90 Day Notice Account (Issue 1). To open this account, a £1,000 minimum deposit is needed and unlimited further additions are allowed. Withdrawals can be made but are subject to 90 days’ notice. There is a minimum transaction amount of £1,000.
In the one year fixed rate bond chart, DF Capital is now offering the third-highest one year rate of 1.18% gross on maturity. This rate is available on its 1 Year Fixed Rate Deposit (Issue 1), which requires a £1,000 minimum deposit to open.

Both DF Capital accounts can only be opened and managed online.

DF Capital’s entry into the charts today comes less than a week after JN Bank entered the savings charts for the first time, offering a one, two, three, four and five year fixed rate bond as well as an easy access account. The one-year version of its Fixed Rate Savings Account offers a rate of 0.80% gross and requires a £100 minimum deposit to open. The two-year option of its Fixed Term Savings account pays 1.00% gross, meanwhile the three, four and five-year options offer more competitive rates in their charts of 1.20% gross, 1.25% gross and 1.30% gross respectively. All options pay interest on anniversary.

JN Bank also entered the easy access savings chart last week with its Easy Access Savings Account, which pays 0.55% gross on deposits of £1,000 and over or 0.10% on deposits less than £1,000. This account pays interest monthly and allows unlimited further additions. Withdrawals can be made at any time. Again, all these accounts can only be opened and managed online.

Number of savings deals starting to recover

Although the number of saving deals are significantly lower than the numbers available at the beginning of March, the launch of two new providers in the savings charts within two weeks will come as welcome news to savers. Indeed, research carried out by Moneyfacts.co.uk has found that since August, month-on-month, the number of savings deals available in the easy access, notice, one year fixed rate bond and five year fixed rate bond charts have been increasing.

 

Number of savings deals
  1 March 2020 1 August 2020 1 September 2020 1 October 2020
Easy access savings accounts 330 301 305 314
Notice accounts 147 87 108 119
One year fixed rate bonds 169 149 151 152
Five year fixed rate bonds 73 47 54 64

 

At the same time, as the below chart shows, month-on-month average rates have risen or remained the same in these charts.

 

Average saving rates
  March 2020 August 2020 September 2020 October 2020
Easy access savings accounts 0.57% 0.22% 0.22% 0.24%
Notice accounts 1.04% 0.49% 0.54% 0.54%
One year fixed rate bonds 1.16% 0.64% 0.66% 0.70%
Five year fixed rate bonds 1.56% 1.00% 1.05% 1.14%

 

While any good news within the savings market will be welcomed by savers at a time when the Bank of England base rate is at a historic low of 0.1%, savers should not be complacent that deals and rates will continue to rise. Instead, savers should act quickly to secure the best deals available in the charts today, as the threat of further base rate cuts continues, along with the economic uncertainty of further lockdowns, both of which could see saving providers slash rates once again.

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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