Savers looking to get the best rate will need to lock into a long-term bond, with the best rate overall of 1.75% AER being offered on a seven year fixed rate bond. For those wanting the flexibility and ability to access their funds quickly, there are limited options on rates above 1.00% AER, although a rate of 1.25% AER is still available, albeit on an account with opening restrictions.
The outlook for savers over the next few months does not look like it will improve significantly and, in fact, savers could see rates fall even further. As such, those looking to secure the best rates are urged to act quickly to avoid missing out.
|Bank of London and The Middle East||Premier Deposit Account||Seven years||1.75% (expected profit rate)|
Bank of London and The Middle East
Premier Deposit Account
5 Year Fixed Rate Account
1.60% (expected profit rate)
|Al Rayan Bank||Fixed Term Deposit||36 months||1.51% (expected profit rate)|
|Ford Money||Fixed Saver 2 Year||Two years||1.55%|
|Ford Money||Fixed Saver 1 Year||One year||1.45%|
This week, Bank of London and The Middle East (BLME) had the best rate overall in the fixed rate bond chart with the seven-year version of its Premier Deposit Account paying an expected profit rate of 1.75% gross on anniversary. BLME also had the best-paying rate on a five year fixed rate bond, with the five-year version of its Premier Deposit Account paying an expected profit rate of 1.60% gross on anniversary. Both these accounts require a minimum opening deposit of £1,000. As well as this, a BLME transfer account to hold funds pending investment is required for these accounts. They both must be opened online and then managed by post.
Hodge Bank also pays a rate of 1.60% gross on anniversary on its 5 Year Fixed Rate Account. To open this account, a £1,000 minimum deposit is needed. It can be opened online or by post and then managed online, by post and by phone. There is also a version of this account that pays interest monthly at a slightly lower gross rate.
The top rate in the three year fixed rate bond chart this week came from Al Rayan Bank, which pays 1.50% gross quarterly on its Fixed Term Deposit. This account requires a £1,000 minimum deposit to open. It can be both opened and managed online, in branch, by post, by phone and via mobile app.
For those looking for a short-term bond, Ford Money had the top rate in both the two and one year fixed rate bond charts. In the two year chart, it offers 1.55% gross on anniversary on its Fixed Saver 2 Year, while in the one year chart, it offers 1.45% gross on anniversary on its Fixed Saver 1 Year. Both these accounts are only available to existing customers and require a minimum deposit of £500 to open. They can both only be opened and managed online.
|Cynergy Bank||Online Easy Access Account – Issue 29||None||1.25%, includes a 0.60% bonus for 12 months|
|National Savings & Investments||Income Bonds||None||1.16%|
|Family Building Society||Market Tracker Saver (1)||Instant||1.13%|
The top-paying easy access account this week came from Cynergy Bank, which pays 1.25%, including a 0.60% bonus for 12 months, gross on anniversary on its Online Easy Access Account – Issue 29. This account is only available to existing customers. It requires a minimum deposit of just £1 to open and allows unlimited further additions. Withdrawals are allowed via a nominated account. It can only be opened and managed online. Savers should also be aware that this rate is due to be reduced on 10 June 2020.
The second-best easy access account rate came from National Savings & Investments, which pays 1.15% gross monthly on its Income Bonds. To open this account, a £500 minimum deposit is needed. It allows unlimited further additions. Withdrawals can be made at any time but must be made via a nominated account. This account is 100% backed by HM Treasury and it can be both opened and managed online, by post and by phone and all transactions must be for a minimum of £500.
Family Building Society offered the third-best easy access account rate this week with its Market Tracker Saver (1) paying 1.13% gross yearly. This account requires a £500 minimum deposit to open. It allows unlimited further additions. Withdrawals, subject to a minimum amount of £100, are restricted to up to 20 withdrawals per calendar year via a nominated account. It can be opened online, in branch or by post and then managed online, in branch, by post and by phone.
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