Derin Clark

Derin Clark

Online Reporter
Published: 13/09/2019

Throughout August, several providers dominated the savings account chart. Bank of London and The Middle East (BLME) for example was offering the top rate for all terms within the fixed rate bond charts, however towards the end of the month it reduced many of its top rates resulting in weakening of competition in these charts. Marcus by Goldman Sachs, Virgin Money and Cynergy Bank all offered the top rate in the easy access chart for the majority of the month, but all these providers have cut their rates since the start of August.

As well as this, August saw many new savings accounts being launched. Of the new accounts launched, these are the ones that are still available:

  • Darlington Building Society’s Autumn Bond Issue 3 paying 1.25% until 30 November 2020. This account requires a minimum opening deposit of just £1, although savers should be aware that it is restricted to existing customers who hold an Autumn Bond Issue 2 and/or live within certain postcodes. This account allows further additions, but withdrawals are not permitted. It can be both opened and managed in branch and by post.
  • The Melton Building Society’s Fixed Rate Savings pays 1.60% monthly, (AER 1.61%) until 24 September 2021 on a £1,000 deposit. This account allows further additions but does not permit withdrawals. It can be both opened both in branch and by post.
  • Nationwide Building Society’s 3 Year Fixed Rate Bond and 3 Year Fixed Rate e-Bond both pay 1.00% on a minimum opening deposit of just £1. Savers should be aware that the e-Bond is only available to those who already hold a Nationwide Current Account. These accounts have a three-year term during which time they do not allow further additions, while earlier access is permitted on closure only on 270 days’ loss of interest. The 3 Year Fixed Rate Bond can only be opened in branch, but then managed online, in branch and via mobile app. The 3 Year Fixed Rate e-Bond can be both opened and managed online and via mobile app. There are also versions of both accounts that pay interest monthly.
  • Principality Building Society’s Online Saver pays 1.43%, which includes a 0.25% bonus for 12 months, on a deposit of just £1. This online-only easy access savings account allows both further additions and withdrawals.  
  • Tesco Bank’s Fixed Rate Saver pays 1.30% on a deposit of £2,000 on the account’s anniversary. This account has an 18-month term, during which further additions and withdrawals are not allowed. It can be opened online or by phone and then only managed by phone. For income seekers, there is also a version of this account that pays interest monthly.
  • Nottingham Building Society’s Fixed Rate Account – Issue 182 pays 1.20% until 30 November 2020, its Fixed Rate Account – Issue 183 pays 1.25% until 30 November 2021, its Fixed Rate Account – Issue 184 pays 1.35% until the 30 November 2022 and its Fixed Rate Account – Issue 185 pays 1.45% until 30 November 2024. All these accounts require a minimum opening deposit of £500 and allow further additions while the issue is open to new savers, but do not permit withdrawals. They can only be opened and managed in branch.
  • Cumberland Building Society’s 1 Year Fixed Interest Fixed Term pays 0.80% until 31 July 2020, its 2 Year Fixed Interest Fixed Term pays 1.05% until 31 July 2021 and its 3 Year Fixed Interest Fixed Term pays 1.25% until 31 July 2022. All these accounts require an opening minimum deposit of £1,000 and allow further additions while the issue is open to new savers, but do not permit withdrawals. These accounts can only be opened in branch but then managed online and via its mobile app as well.

None of the accounts that were launched in August offer the current top rates in the savings charts. Savers looking for a top rate account should consider:

  • Gatehouse Bank’s Fixed Term Deposit, which tops the five year fixed rate bonds chart offering an expected rate of 2.45%. This online-only account requires a £1,000 minimum deposit and does not allow further additions or withdrawals.
  • Bank of London and The Middle East tops the three year, two year and one year fixed rate bond charts with its Premier Deposit Account. The three-year version pays an expected profit rate of 2.45%, the two-year version pays an expected profit rate of 2.35% and the one-year version pays an expected profit rate of 2.10%. All the accounts require a £1,000 minimum deposit and do not allow further additions or withdrawals. The accounts can only be opened online and then managed by post. As well as this, to open these accounts a BLME transfer account to hold funds pending investment is required.
  • PCF Bank 180 Day Notice Deposit Issue 1 currently tops the notice account chart paying 1.85% on a £1,000 deposit. This account allows further additions, while withdrawals are permitted but subject to 180 days’ notice. The account can be opened online or by post and then managed by phone as well.
  • Al Rayan Bank tops the easy access savings chart with its Everyday Saver paying an expected profit rate of 1.60% gross monthly (1.61% AER). This account requires a £500 opening deposit and allows unlimited further additions and withdrawals. It can be both opened and managed online, in branch, by post, by phone and via its mobile app.

 

All rates are correct at time of publishing.

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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