The week savers will see that many of the best fixed rates have reduced again. Savers need to also keep an eye on future reductions in easy access rates with ICICI Bank UK publicising planned reductions in January. See more in our full round up of savings accounts below.
Savers should also check if they hold any savings or funds with banks that hold their banking licences outside in the UK. After the 31 December 2020 passporting arrangements for EU banks to operate in the UK will cease but your funds will still be protected by the overseas scheme if the bank hasn’t become authorised in the UK.
Provider |
Account |
Term |
Rate AER |
Shawbrook Bank |
5 Year Fixed Rate Bond Issue 33 |
Five years |
1.25% |
Premier Deposit Account |
Three years |
1.00% |
|
Vernon Building Society |
Fixed Rate Bond until 31st January 2023 |
31.01.23 |
1.00% |
HBZ Sirat eDeposit (Islamic Fixed Term Account) |
12 months |
0.85% (expected profit rate) |
Note: accounts not covered by the Financial Services Compensations Scheme have not been included.
Compare the best fixed rate bonds on our charts.
Savers need to be aware that after the 31 December 2020 any funds held with AgriBank will not be protected under either the UK’s Financial Services Compensation Scheme (FSCS) but by the Maltese deposit protection scheme.
Ikano Bank is a Swedish Bank and offers a competitive five-year fixed rate bond at 1.26% gross. Ikano Bank is in the process of getting a UK banking licence. If this remains unconfirmed on 1 January 2021 then savers funds will be protected by the Swedish deposit protection scheme.
Read more in our guide to depositor protection schemes.
Provider |
Account |
Maximum number of withdrawals allowed |
Rate AER |
ICICI Bank UK |
SuperSaver Savings Account |
Unlimited |
0.75%* |
Double Access Account Issue 1 |
Reduced rate paid if more than two withdrawals made |
0.60% |
|
UBL UK |
Online Easy Access |
One free withdrawal per month, additional withdrawals are charged at £1 each |
0.60% |
Online Flexi Saver |
Unlimited |
0.55% |
Note: accounts with eligibility exclusions have not been included.
*Note rate reducing to 0.60% AER on January 11 2021.
This week ICICI Bank continues to offer the best return on an easy access account at 0.75% gross, however savers should be aware that this rate is reducing on 11 January 2021 to 0.60% gross. Its SuperSaver Savings Account can be opened with £1 online, in branch or by phone. Those opening this account online will need to open an ICICI Bank HomeVantage Current Account first, they can then use their online login to start their savings application. Once open the account can be managed online, in branch by post and via mobile app. All withdrawals from this account must be made into an ICICI Bank HomeVantage Current Account. Interest is paid monthly.
Aldermore and UBL UK have the next best easy access rate. The Double Access Account Issue 1 from Aldermore has a rate of 0.60% gross and interest can be paid either on anniversary of the account opening or monthly. The account can only be opened and managed online, and the minimum deposit is £1,000. The Online Easy Access account from UBL UK has a rate of 0.60% gross and can be opened with £500 in branch or by post. It can then only be managed online. Interest is paid yearly.
Investec Bank plc has a rate of 0.55% gross on its Online Flexi Saver. The account can be opened and operated online with a minimum deposit of £5,000. Interest is paid monthly.
Compare the best easy access savings accounts on our charts.
Provider |
Account |
Notice |
Rate AER |
UBL UK |
90 Day Ameen Islamic Notice |
90 days |
1.00% (expected profit rate) |
UBL UK |
35 Day Notice |
35 days |
1.00% |
There is no change in the best rates available for a notice account this week. UBL UK continues to offer three of the best notice rates; the 90 Day Ameen Islamic Notice (expected profit rate), the 90 Day Notice and 35 Day Notice all at 1.00% gross with interest paid half-yearly. These accounts can be opened with a £1 deposit in branch or by post. They can then be operated in the same way. Savers that require earlier access will incur a 35-day or 90-day interest penalty depending on the account opened.
All the above UBL UK accounts are being reduced to 0.75% on 25.1.21.
Compare the best notice accounts on our charts.
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.