Martin Lewis offers advice on savings and interest rates
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Interest rates dropped sharply after the Bank of England’s decision to lower its base rate to 0.1 percent in March 2020. With the base rate remaining the same ever since, it has been a struggle for savers to find an option to help grow their funds. Indeed, there has even been speculation about negative interest rates being implemented in the future.
However, the competition could be hotting up when it comes to offering enticing deals which can pique savers’ interest.
Recently, Marcus by Goldman Sachs extended its easy access account, offering a competitive interest rate.
But swiftly following in potentially tempting savings deals is Kent Reliance.
The provider has launched a new cash ISA which is pulling ahead of the pack.
Kent Reliance now has an ISA which pays 0.45 percent on balances saved of £1,000 or more.
This puts it slightly ahead of the next best offer, provided by Paragon Bank.
The rate is an attractive one, especially for individuals who are looking to make the most of their new ISA allowance.
The “use it, or lose it” allowance recently ticked over due to the start of a new tax year.
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However, Britons still have £20,000 they will be able to save tax-free into ISAs until April 2022.
Express.co.uk spoke to Rachel Springall, finance expert at Moneyfacts, who offered further insight.
Ms Springall praised the offer, but offered a warning to savers looking into the options provided.
She said: “It’s great to see some competition in the ISA market with Kent Reliance launching some attractive options for savers looking to take advantage of their current ISA allowance.
“At 0.45 percent, the easy access ISA takes a place as joint market-leaning and may well entice savers looking for flexibility with their cash.
“Those who want to lock their funds away for a higher return will also find its two-year fixed ISA at 0.51 percent highly competitive too but its important savers compare other deals carefully.
“Savers may want to split their pot between easy access and fixed.
“Thankfully, savers can choose to invest between variable and fixed rate ISAs within Kent Reliance’s range which may be a bonus.”
While Kent Reliance is perhaps a less familiar provider to Britons, it is still one which is safe.
The provider is covered by the Financial Services Compensation Scheme (FSCS), the UK’s statutory Deposit insurance and investment compensation programme.
This means any funds deposited with the provider up to £85,000 are protected and insured should the worst happen.
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