The best savings rates this week 04.09.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/09/2020

This week has seen some new product launches and rate increases, including Ford Money and Close Brothers Savings increasing rates on fixed rate bonds – however not by enough to make it into this week’s top rates. Paragon Bank also launched a new 40-day notice account.

The best fixed rate bonds savings rates that you can open online

Provider

Account

Term

Rate AER

Bank of London and The Middle East

Premier Deposit Account

Seven years

1.50% (expected profit rate)

Bank of London and The Middle East

Premier Deposit Account

Five years

1.40% (expected profit rate)

Gatehouse Bank

 

 

My Community Bank

Raisin UK – 3 Year Fixed Term Deposit

 

36 Month Fixed Term

Savings Account

Three years

 

 

36 months

1.35% (expected profit rate)

 

1.35%

Charter Savings Bank

Fixed Rate Bond

Two years

1.31%

Paragon Bank

United Trust Bank

Allica Bank

1 Year Fixed Rate Savings Account

UTB 1 Year Bond

Fixed-Term Personal Savings account (Issue 8)

One year

 One year

12 months

1.20%

 1.20%

1.20%

The fixed rate bond chart this week focuses upon those accounts offering the best rates for savings accounts that can be opened online.
While the Bank of London and The Middle East (BLME) now has fewer accounts at the top of all the fixed rate charts than seen earlier in 2020, it continues to offer the best overall rate available in the market with its seven-year fixed rate bond. This pays an expected profit rate of 1.50% gross on anniversary on its Premier Deposit Account. The minimum balance is £1,000 and savers need to open a BLME transfer account to hold funds pending investment. The account can only be opened online and then must be managed by post.
BLME also offers the best rate for a five-year fixed rate bond that can be opened online. Its five-year Premier Deposit Account pays an expected profit rate of 1.40% gross and can be opened with £1,000, while profit is paid on anniversary. Savers also need to open a BLME transfer account to hold funds pending investment. The account can only be opened online and then managed by post.
The best three-year fixed bond rate this week for an account that can be opened online is offered by both Gatehouse Bank and My Community Bank. Gatehouse Bank with its Raisin UK – 3 Year Fixed Term Deposit account has an expected profit rate of 1.35% gross and My Community Bank with its 36 Month Fixed Term Savings Account also at 1.35% gross.
The three-year fixed rate bond from Gatehouse Bank must be opened through the Raisin platform and has a minimum deposit of £1,000. Profit is paid on maturity. The account must be opened online but can then be managed by post, phone and online. Raisin UK is offering a bonus of up to £50 that can be claimed when you open your first savings account via its website. Terms and conditions apply. My Community Bank is a credit union and savers wanting to open this account will need to be eligible to join the credit union. Those applying for an account will see the criteria set out on the credit union’s website. The 36 Month Fixed Term Savings Account can be opened from £1,000 and interest is paid on maturity and is compounded annually. The account can only be opened online and then can be managed by post, phone and online.
Charter Savings Bank continues to offer the best rate for a two-year fixed rate bond this week. The two-year version of its Fixed Rate Bond pays 1.31% gross on anniversary. There is also a version of this account that pays interest monthly at a gross rate of 1.30%. Both options require a £5,000 minimum deposit to open. The accounts can only be opened and managed online.
The best rate this week for a one-year fixed rate bond is now offered by Paragon Bank, United Trust Bank and Allica Bank. Paragon Bank’s 1 Year Fixed Rate Savings Account pays 1.20% gross on anniversary and requires a £1,000 minimum deposit to open. A monthly interest option is available at 1.19% gross rate. This account can be both opened and managed online and by post.
The UTB 1 Year Bond from United Trust Bank pays 1.20% gross on anniversary. This account has a £5,000 minimum deposit to open. The account must be opened online but can then be managed online and by post.

Allica Bank pays 1.20% gross on maturity or 1.19% gross as monthly interest on its Fixed Term Personal Savings Account (Issue 8). These accounts can only be opened and managed online. The minimum balance is £1,000.

Find the best fixed rate bonds

All the rates available can be found on our fixed rate bonds chart.

You can personalise your search to suit how you want to open and manage your account and based on the amount you want to save.

The best easy access savings rates

Provider

Account

Notice

Rate AER

National Savings & Investments

Income Bonds

None

1.16%

National Savings & Investments

Direct Saver

None

1.00%

Paragon Bank

Triple Access Account (Issue 1)

None

0.80%

National Savings & Investments (NS&I) dominates the top of the easy access savings chart and all three of the best rates this week are accounts that can be opened online.
NS&I takes the first two spots, and the top rate goes to its Income Bonds, which pays 1.15% gross monthly. The minimum opening deposit is £500. All transactions made to this account must be at least £500. It can be both opened and managed online, by post and by phone.
Next is NS&I with its Direct Saver that pays 1.00% gross yearly. This account can be opened with only a £1 online or by phone. Savers can also manage this account online or by phone.
Both NS&I accounts are 100% backed by HM Treasury.
Paragon Bank has the third-best rate for an easy access account at 0.80% gross. Interest is paid on the anniversary of the account. This account can be opened with a £1 online only and then managed online only. Savers should be aware that the rate reduces to 0.25% if more than three withdrawals are made during a 12-month period.

Find the best easy access rates

All the rates available can be found on our easy access savings chart.

You can personalise your search to suit how you want to open and manage your account and based on the amount you want to save.

 

The best notice accounts

Provider

Account

Notice

Rate AER

Bank of London and The Middle East

90 Day Notice Account (Issue 3)

90 days

1.10% (expected profit rate)

Allica Bank

95-Day Notice Personal Savings Account (Issue 1)

95 days

1.10%

Paragon Bank

120 Day Notice Account

120 days

1.10%

This week, we have focussed on the best notice-account rates for accounts requiring a maximum of 180 days’ notice. We’ve also removed ICICI Bank UK as its Notice Savings Account paying 1.10% gross reduces to a lower rate of 0.75%gross on 10 September 2020.
The top notice account rate this week came from BLME, which pays an expected profit rate of 1.10% gross quarterly on its 90 Day Notice Account (Issue 3). Savers need at least £10,000 to open this account. Withdrawals are allowed with 90 days’ notice and must be at least £1,000. This account can be opened and managed online.
Allica Bank offers a 95-Day Notice Personal Savings Account (Issue 1) at 1.10% gross, paying interest on the anniversary of the account. This account can only be opened online and only managed by phone. The minimum deposit is £1,000. Withdrawals are allowed with 95 days’ notice.
The 120 Day Notice Account (Issue 19) from Paragon Bank has a rate of 1.10% gross, paying interest on the anniversary of the account or a reduced rate of 1.09% gross monthly. The minimum opening amount required is £500. All transactions must be made via a nominated account.

Find the best notice account rates

All the rates available can be found on our notice account charts.

You can personalise your search to suit how you want to open and manage your account and based on the amount you want to save.

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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