The Best Savings Rates This Week 28.08.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 28/08/2020

Competition within the savings market was strengthened this week when Zopa launched its first range of savings products. While these new products are not currently offering chart-topping rates, the rates are competitive and, if they prove successful, could result in further products being launched.

Savers looking for an easy access account will be pleased to see that National Savings & Investments continues to offer its chart-topping rate of 1.16% AER, but as this rate is significantly higher than any other account in this chart, the rate could fall at any time. There were some changes in the fixed rate bond chart this week, noticeably Charter Savings Bank withdrawing its one year bond due to reaching its funding goal. As the savings market still remains highly challenging, saves are urged to act quickly if they want the top rates currently available.

The best fixed rate bonds savings rates

Provider Account Term Rate AER
Bank of London and The Middle East Premier Deposit Account Seven years 1.50% (expected profit rate)
UBL UK 5 Year Fixed Term Deposit Five years 1.50%
UBL UK 3 Year Fixed Term Deposit Three years 1.40%
Charter Savings Bank Fixed Rate Bond Two years 1.31%

Paragon Bank

United Trust Bank

1 Year Fixed Rate Savings Account
UTB 1 Year Bond

One year

One year

1.20%

1.20%

 

Bank of London and The Middle East (BLME) had the best seven year fixed bond rate this week paying an expected profit rate of 1.50% gross on anniversary on its Premier Deposit Account. This account requires a £1,000 minimum deposit to open and a BLME transfer account is needed to hold funds pending investment. This account can only be opened online but can then be managed by post.

The best five year fixed bond rate this week came from UBL UK. Its 5 Year Fixed Term Deposit pays 1.55% gross on maturity, 1.50% gross on anniversary and 1.49% gross monthly. All versions require a £2,000 minimum deposit to open. They can be opened and managed in branch and by post. UBL UK also had the best three year fixed bond rate this week with its 3 Year Fixed Term Deposit paying 1.42% gross on maturity, 1.40% gross on anniversary and 1.39% gross monthly. These accounts have the same terms and conditions as the five year options.

Charter Savings Bank had the best two year fixed bond rate 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.

Both Paragon Bank and United Trust Bank had the best one year fixed bond rates this week. Paragon Bank’s 1 Year Fixed Rate Savings Account pays 1.20% gross on anniversary, which requires a £1,000 minimum deposit to open. There is also a version of this account that pays interest monthly at a 1.19% gross rate. This account can be opened and managed online and by post. United Trust Bank pays 1.20% gross on anniversary on its UTB 1 Year Bond. This account requires a £5,000 minimum deposit to open. It must be opened online, but can then be managed by post and by phone.

Fixed rate bonds

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

The best easy access savings rates

Provider Account Notice Rate AER
National Savings & Investments Income Bonds None 1.16%
ICICI Bank UK SuperSaver Savings Account None 1.00%
National Savings & Investments Direct Saver None 1.00%

 

The top easy access savings rate continued to be offered by National Savings & Investments (NS&I) which pays 1.15% gross monthly on its Income Bonds. This account requires a £500 minimum deposit to open. It allows unlimited further additions and withdrawals can be made at any time via a nominated account. Savers should be aware that all transactions must be of a £500 minimum. This account is 100% backed by HM Treasury. It can be opened and managed online, by post and by phone.

ICICI Bank UK and NS&I both continued to offer the second best easy access savings rate this week. ICICI Bank UK pays 1.00% gross monthly on its SuperSaver Savings Account. This account requires a £1 minimum deposit to open and is only available to new and existing HomeVantage Current Account customers. It allows unlimited further additions. Withdrawals are allowed at any time but 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 post and via mobile app. Customers should be aware that the rate reduces to 0.75% gross on 5 September 2020.

NS&I pays 1.00% gross yearly on its Direct Saver. To open this account a £1 minimum deposit is needed. It allows unlimited further additions and withdrawals can be made at any time via a nominated account. It is 100% backed by HM Treasury and can be opened and managed online and by phone.

Easy access accounts

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

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)
ICICI Bank UK Notice Savings Account 45 days 1.00%
UBL UK 35 Day Notice 35 days 1.00%

 

The top rate in the up to 90 days notice account chart came from Bank of London and The Middle East (BLME) which pays an expected profit rate of 1.10% gross quarterly on its 90 Day Notice Account (Issue 3). This account requires a £10,000 minimum deposit to open. Unlimited further additions are allowed. Withdrawals are permitted subject to 90 days’ notice and must be for a minimum of £1,000. This account can only be opened and managed online.

In the up to 60 days chart both ICICI Bank UK and UBL UK offer the top rate of 1.00%. ICICI Bank UK pays 1.00% gross monthly on its Notice Savings Account. To open this account a £1 minimum deposit is needed. It is only available to new and existing Home Vantage Current Account customers. Unlimited further additions are allowed. Withdrawals are permitted subject to 45 days’ notice. All transactions must be made via a linked Home Vantage Current Account. Customers should be aware that the rate reduces to 0.75% gross on 10 September 2020.

UBL UK pays 1.00% gross ½ yearly on its 35 Day Notice, which requires a £1 minimum deposit to open. This account allows unlimited further additions and withdrawals are permitted subject to 35 days’ notice or earlier access is allowed with the loss of 35 days’ interest. It can be opened and managed in branch and by post.

Notice accounts

All the rates available can be found on our notice accounts chart.

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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