The Best Savings Rates This Week 07.05.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 07/05/2021

Savers looking for high interest savings accounts will have to look towards the fixed rate bond chart, which offers the best UK savings rates overall this week. Savers considering a long-term fixed rate bond, however, should factor in the impact inflation may have on their deposits, especially if inflation rises as some experts predict in the coming months as we ease out of lockdown. An alternative option for savers could be a notice account, some of which offer higher rates than easy access accounts, but that also enable savers to access funds subject to a notice period being given.

Savers should be aware that the accounts highlighted below are the top-paying accounts available to new customers and higher rates may be available on accounts available to existing customers only. Savers can compare the best savings rates available to existing customers only by visiting our savings charts and selecting these accounts in the refine search section.

The best fixed rate bonds savings rates

Provider Account Term Rate AER  
Gatehouse Bank Fixed Term Green Saver Five years 1.40% (expected profit rate) Find out more
Zopa 3 Year Fixed Term Savings Three years 1.00% Find out more
Atom Bank 2 Year Fixed Saver Two years 0.85% Find out more
Atom Bank 1 Year Fixed Saver One year 0.75% Find out more

 

The best rate in the fixed rate savings chart overall came from Gatehouse Bank, with its Fixed Term Green Saver paying an expected profit rate of 1.40% gross on anniversary on a five-year term. This account requires a £1,000 minimum deposit to open. It has the incentive of Gatehouse Bank planting a tree in a UK woodland when the account is opened and funded. It must be opened and managed online.

New to the top of the three year fixed rate bond chart this week was Zopa’s 3 Year Fixed Term Savings account, which pays 0.99% gross monthly, although savers should note that interest is only available on maturity. To open this account, a £1,000 minimum deposit is needed. It must be opened online and can then be managed online and via mobile app.

Atom Bank topped the two and one year fixed rate bond charts this week. Its 2 Year Fixed Saver pays 0.85% gross on anniversary and its 1 Year Fixed Saver pays 0.75% gross on anniversary. Both accounts require a £50 minimum deposit to open. They can only be opened and managed via mobile app. There are versions of both accounts that pay interest monthly at the same gross rate.

Compare the best fixed rate bonds

The best easy access savings rates

Provider Account Maximum number of withdrawals allowed Rate AER  
ICICI Bank UK SuperSaver Savings Account Unlimited via linked ICICI Bank Current Account only 0.50% Find out more
Virgin Money Club M Saver Unlimited via Club M Account or nominated account 0.50% Find out more
Kent Reliance Easy Access Account - Issue 45 Unlimited but withdrawal method dependent on how a/c is opened 0.45% Find out more
Yorkshire Building Society Annual Access Account Issue 8 1 withdrawal day per anniversary year 0.45% Find out more

 

ICICI Bank UK and Virgin Money both paid the highest rate on an easy access savings account that is open to new customers. ICICI Bank UK’s Super Saver Savings Account pays 0.50% gross monthly. This account does not require a minimum deposit to open but a HomeVantage Current Account is needed. It allows further additions and withdrawals are permitted but all transactions must be made via a linked ICICI Bank current account. It can be opened online, in branch or by phone and then managed online, in branch, by phone and via mobile app. Virgin Money’s Club M Saver pays 0.50% gross quarterly. Again, this account does not require a minimum deposit to open but a Virgin Money Club M Account must also be opened. This account allows further additions and withdrawals can be made via a Club M Account or a nominated account. It can be opened online or by phone and then managed online, in branch, by phone and via mobile app.

Both Kent Reliance and Yorkshire Building Society offer the next-best easy access savings rate. Easy Access Account – Issue 45 from Kent Reliance pays 0.45% gross yearly and requires a £1,000 minimum deposit to open. Further additions can be made. Withdrawals are permitted but the withdrawal method is dependent on how the account is opened. It can be both opened and managed online, in branch and by post. There is a version of this account that pays interest monthly at the same gross rate. Yorkshire Building Society pays 0.45% gross on anniversary on its Annual Access Account Issue 8. To open this account, a minimum deposit of £100 is needed and the money must be new to the building society. It allows further additions, but withdrawals are restricted to just one day per anniversary year. Savers should be aware that after 12 months, this account reverts to an Easy Saver. It can be opened in branch or by post and then managed online, in branch and by post.

Compare the best easy access savings accounts

The best notice account rates

Provider Account Notice Rate AER  
Moneycorp Bank* 90 Day Notice Account 90 days 0.65% Find out more
Secure Trust Bank 120 Day Notice Account 120 days 0.55% Find out more
Oxbury Bank Personal 95 Day Notice Account – Issue 3 95 days 0.52% Find out more

 

The best notice account rate this week on an account available to new customers came from Moneycorp Bank*, which pays 0.65% gross monthly on its 90 Day Notice Account. To open this account, a £10,000 minimum deposit is needed, along with a Moneycorp Bank Deposit Account for transactional purposes. This account allows further additions while the issue remains open. Withdrawals can be made subject to 90 days’ notice. The account can only be opened and managed online.

Hanley Economic Building Society’s Notice 90 pays 0.55% gross on deposits at £25,000, as well as a higher rate of 0.65% gross on deposits at £50,000 and a lower rate of 0.35% gross on deposits at £100. Interest can be paid yearly or monthly. This account is only available to those who live within 25 miles of the building society’s head office. Savers interested in this account can find out more information on our notice account chart.

Today, Secure Trust Bank launched its 120 Day Notice Account paying 0.55% gross quarterly. It requires a £1,000 minimum deposit to open and allows further additions. Withdrawals are restricted to four interest withdrawals per calendar year and three capital withdrawals per calendar year subject to 120 days’ notice. It must be opened online and but can then be managed by phone and online.

Oxbury Bank had the next-best rate on its Personal 95 Day Notice Account – Issue 3, which pays 0.52% gross monthly. This account requires a £1,000 minimum deposit to open, and an Oxbury App is needed to use online banking. It allows further additions and withdrawals can be made subject to 95 days’ notice with all transactions made via a nominated account. This account must be opened online but can then be managed online and via mobile app.

Compare the best notice accounts

*Deposits into Moneycorp Bank are not protected under the Financial Services Compensation Scheme (FSCS) Depositor Protection Scheme, but are instead protected under the Gibraltar Deposit Guarantee Scheme. For more information, read our guide on depositor protection schemes.

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