Moneyfacts Pick of the Week | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 26/05/2022

Last updated: 26th May 2022

The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market. These can range from mortgages to savings accounts. This week, I have analysed the following deals, along with their perks, of note:

Savings

Bank of London & the Middle East – 18 Month Premier Deposit Account (Anticipated Profit Rate)

This week saw Bank of London & the Middle East increase the expected profit rate on a number of its accounts, including its 18-month Premier Deposit account. Now paying 2.30% on anniversary, this option takes a place within the top 10 of its sector. Savers with at least £1,000 to invest and who are looking for a competitive return for their funds may find this an attractive choice. Overall, the deal earns an Excellent Moneyfacts product rating.  

Key product details:

  • Rate: 2.30% gross / 2.30% AER payable on anniversary
  • Notice / term: 18 months
  • Minimum opening amount: £1,000
  • Maximum investment amount: £1 million
  • Access: Not permitted
  • Further additions:  Not permitted
  • Opening account: Online
  • Managing account: By post
  • Other information: Minimum applicant age 18. Joint account option available. BLME transfer account required. Sharia’a compliant account – rates shown are an expected profit rate.

Cynergy Bank – Online Easy Access Account (Issue 50)

Included in the various updates across its range of savings accounts this week, Cynergy Bank has lifted the existing customer restriction on its Online Easy Access account. Paying a rate of 1.20% (which includes a bonus rate of 0.90% for 12 months), this account is open to investments of as little as £1. This account takes the lead position in our top rate tables when compared against other similar easy access accounts that offer a bonus currently on offer. This could well appeal to those who are looking to maintain flexible access to their savings pot in these uncertain times and who may be tempted by the competitive return, as both access and further additions are permitted. However, savvy savers might find it wise to review their account after 12 months when the bonus will expire and the rate will reduce by 0.90%. Overall, the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.20% gross / 1.20% AER, (0.90% of which is a bonus that expires after 12 months), payable on anniversary
  • Notice / term: None
  • Minimum opening amount: £1
  • Maximum investment amount: £1 million
  • Access: Permitted via a nominated account
  • Further additions: Permitted
  • Opening account: Online
  • Managing account: Online
  • Other information: Minimum age 18. Joint account option available. Cynergy Bank Authenticator App or Digipass required to use online banking.

United Trust Bank – ISA 3 Year Bond

United Trust Bank has increased the rate across its range of ISA bonds by up to 0.15% this week. The ISA 3 Year bond now pays 2.25% and takes a place in our top tables when compared against other ISAs with similar terms. It may appeal to savers looking to use their ISA allowance and who are happy securing their savings pot away for the term. Savers will need to have at least £15,000 to invest, but the account does allow earlier access subject to an interest penalty, a flexibility which might tempt some investors. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.25% gross / 2.25% AER payable on anniversary
  • Notice / term: Three years
  • Minimum opening amount: £15,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted on account closure, subject to an interest penalty
  • Further additions: Not permitted
  • Transfers in: Permitted. Accepts Cash and Stocks and Shares ISAs.
  • Transfers out: Permitted on account closure, subject to an interest penalty
  • Opening account: By post
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18.

Al Rayan Bank – 12 Month Fixed Term Deposit

Savers who are happy to secure their nest egg away for the short-term may be interested to see that Al Rayan Bank has increased the returns on a selection of its fixed term deposit accounts this week. Rising by 0.07%, the 12 Month Fixed Term Deposit now pays an expected profit rate of 2.33%, which sees this account take a place in our top tables as it currently pays one of the leading rates on offer for its specific term, so this may well be a tempting choice for investors. Overall, this account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.33% gross / 2.35% AER payable quarterly
  • Notice / term: 12 months
  • Minimum opening amount: £5,000
  • Maximum investment amount: £999,999
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online, by phone and via its mobile app
  • Managing account: Online, by phone and via its mobile app
  • Other information: Minimum applicant age 16. Joint account option available. Sharia’a compliant account – rates shown are an expected profit rate. Quarterly profit can be taken as an income with a reduced rate.

Moneybox – Personal 120 Day Notice Account – Issue 1

Moneybox has increased the rate on its 120-day notice account this week by 0.38%. Now paying 1.44%, this account takes a place within the top 10 when compared to other notice accounts currently available. This could be an option that suits savers who want to have some flexible access to their cash, but who are happy to provide the required 120-day notice to do so. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.44% gross / 1.45% AER payable monthly
  • Notice / term: 120 days
  • Minimum opening amount: £1
  • Maximum investment amount: £85,000
  • Access: Permitted, subject to 120 days’ notice.
  • Further additions: Permitted
  • Opening account: Via its mobile app
  • Managing account: Via its mobile app
  • Other information: Minimum applicant age 18. Operated by Shawbrook Bank.

Mortgages

Accord Mortgages – Two-year discounted variable rate mortgage, 65% loan-to-value

Accord Mortgages has made a couple of updates this week which included re-pricing discounted variable rates. One of these deals is priced at 1.99% (2.75% discount) until 31 August 2024 and is available to both those purchasing and those remortgaging at 65% loan-to-value. This product may tempt borrowers who are comfortable with a variable rate and who are looking for a competitive initial rate combined with relatively low set-up costs, as the fee of £495 can be added to the advance, and a free valuation incentive is also available. Already an attractive option when considered as a package, this product also continues to provide borrowers with flexible features, so despite the small rise in rate this week, this deal maintains its position in our top table for Flexible products and earns an Outstanding Moneyfacts product rating.

Key product details:

  • 1.99% discounted variable rate to 31.8.24
  • Product fee: £495
  • Maximum loan-to-value: 65%
  • Available to: All borrowers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments. Underpayments and payment holidays considered (with notice required), not to exceed level of overpayments made.
  • Lending area: Great Britain and Northern Ireland. Available via selected intermediaries.

Buy-to-Let Mortgages

Leek United Building Society – Five-year fixed rate mortgage, 75% loan-to-value

Leek United Building Society increased selected fixed rates by up to 0.20% this week, but the five-year fixed rate option at 75% loan-to-value may well remain a tempting choice for landlords wanting to keep any outlay on mortgage set-up costs to a minimum. Now priced at a reasonable 2.80% until 31 October 2027, this option continues to carry a £995 fee which borrowers could add to the advance. This is offset further by a generous incentive package, including £400 cashback and a free valuation. On assessment, this deal retains its place in our top tables despite the rate rise, and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.80% fixed rate to 31.10.27
  • Product fee: £995
  • Maximum loan-to-value: 75%
  • Available to: House purchase and remortgage customers
  • Incentives: Free valuation and £400 cashback
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.
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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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