| UPDATED: 22:26, Wed, Mar 10, 2021
Link copied Make the most of your money by signing up to our newsletter for FREE now
SUBSCRIBE Invalid email
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
Interest rates have been impacted by the Bank of England’s decision in March 2020 to reduce its base rate to 0.1 percent, which had a knock-on effect for familiar providers. As a result, it has been difficult for savers to secure a satisfactory rate to help grow their funds. However, for those who are still looking to put money away - looking for the best interest rates in the UK will be important.
Topping the notice account chart this week was ICICI Bank UK with its Raisin UK – 95 Day Notice Account and its Notice Savings Account both paying 0.85% gross monthly. Savers should be aware that the rate on the Raisin UK account will be reduced on the 8 March 2021 to 0.55% and the rate on the Notice Savings Account will be reduced on the 15 March 2021 to 0.55%. The Raisin UK – 95 Day Notice Account requires a £1,000 minimum deposit to open and comes with the incentive of Raisin UK offering a bonus or Amazon gift card of up to £15 when a first savings account is opened via its website (terms and conditions apply). This account does not allow further additions. Withdrawal of the full account balance only is permitted subject to 95 days’ notice and account closure. It must be opened online but can then be managed online, by post and by phone. ICICI Bank UK’s Notice Savings Account requires a £1 minimum deposit to open, as well as a Home Vantage Current Account. It allows
A rate reduction saw PCF Bank top the fixed rate bond chart this week, with its 7 Year Term Deposit Issue 15 paying 1.45% gross on anniversary. This account requires a £1,000 minimum deposit to open. It must be opened online but can then be managed online and by phone.
Topping five and three year fixed rate bond charts this week was Gatehouse Bank. It pays an expected profit rate of 1.40% gross on anniversary on the five-year version of its Fixed Term Green Saver, while the three-year version pays an expected profit rate of 1.10% gross on anniversary. Both options require a minimum deposit of £1,000 to open. These accounts have the incentive of Gatehouse Bank planting a tree in a UK woodland project certified by the UK Government’s Woodland Carbon Code when an account is opened and funded. They must be opened and managed online.
ICICI Bank UK’s Notice Savings Account and Raisin UK – 95 Day Notice Account both pay 0.85% gross monthly. Notice Savings Account requires a £1 minimum deposit to open and a HomeVantage Current Account is needed. It allows further additions. Withdrawals are permitted subject to 95 days’ notice and all transactions must be made via a linked HomeVantage Current Account. It can be both opened and managed online, in branch and by phone. It should be noted that the rate will reduce to 0.55% on 15.3.21 and 0.35% on 3.5.21. Raisin UK – 95 Day Notice Account requires a £1,000 minimum deposit to open and allows further additions. Withdrawals can be made but must be of the full account balance and subject to 95 days’ notice and account closure. The account must be opened online, but can then be managed online, by post and by phone. It should be noted that the rate will reduce to 0.55% on 9.3.21 and 0.35% on 27.4.21. This account benefits from Raisin UK offering a bonus or Amazo
Share
In a week where challenger bank Marcus by Goldman Sachs® made headlines by re-entering the easy access savings chart with its Online Savings Account, challenger banks continue to dominate the savings charts. In fact, our research has found that challenger banks offer the highest average rates in both the easy access savings account and fixed rate bond charts, meaning that savers who have stayed with a high street bank may likely be missing out on the best rates.
Average easy access rates
For example, the average rate being offered by a challenger bank on an easy access saving account was 0.39% AER on the 1 January 2021, this compares to an average rate of just 0.15% AER being offered by high street banks on the same day. This means that a saver who had put £5,000 into a high street savings account, for example, would get an average return of £7.50 per year, whereas those who had put their savings into a challenger bank would get an average of £19.50 per year. Meanwh