Martin Lewis advises on savings accounts and premium bonds
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Raisin UK, a UK savings marketplace that connects savers with a range of banks offering deposit-protected savings accounts with competitive interest rates, has launched a new one-year savings account. It has partnered with the National Bank of Egypt to offer a one year Fixed Term Deposit account which is offering one of the best rates on the market.
People who are looking to get the best interest rates on their savings might be interested in the new savings account giving 2.7 percent interest.
This will suit savers who are able to lock their money away for one year without having to make any withdrawals.
The estimated balance after the one year fixed term on a deposit of £10,000 is £10,270.00.
The minimum amount someone can deposit is £10,000 and the maximum amount they can deposit is £85,000.
Raisin UK and Ahli United Bank also offer a one year Fixed Term deposit account which offers 2.55 percent AER.
This savings account has piqued the interest of money experts at independent financial company Moneyfacts.
They said it was an “excellent” option for people if they can afford to lock away their savings for a year.
Savers will need £1,000 to open this account and the maximum amount they can earn this interest on is £85,000.
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Four well known banks were recently outed by Moneyfacts for paying just 0.01 percent interest on savings, despite the Bank of England increasing interest rates for the fifth time in a row this month.
Barclays, National Savings & Investments (NS&I, Allied Irish Bank and Citibank UK are all offering a measly 0.01 percent interest on certain easy access accounts, meaning their customers are getting a raw deal.
A saver with £10,000 in an easy access account paying 0.01 percent would make just £1 of interest over 12 months.
Sarah Coles, Senior Finance Analyst at Hargreaves Lansdown, said savers need to move banks for a better rate.
Meanwhile, Barclays and NS&I said they are currently reviewing their savings rates.
One year fixed term accounts won’t be the best option for everyone as some people will need an easy access account.
Money Saving Expert founder Martin Lewis recently told Britons: “The best easy access savings account right now is with Chase Bank which pays 1.5 percent.
“You can fix for a year at over two percent – that’s the first time since 2019 you’ve been able to get rates above two percent – you can get a two year fix at 2.5 percent.”
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Another option is Santander’s 123 Regular e-Saver which now offers those looking to build their savings pot an attractive rate of 2.5 percent interest. (link)
However, there’s a catch – it’s only available for the first 12 months.
Santander customers also receive up to three percent cashback on selected household bills, capped at £5 in each cashback tier each month.
NatWest customers will also receive up to 3.25 percent interest on their savings but only up to £1,000.
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