Martin Lewis advises on savings accounts and premium bonds
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Savers have had a challenging time in the last two and a half years, with rates hitting rock bottom. However, in recent months the situation has begun to improve, with consecutive base rate rises – the most recent being in August.
It means there are more chances to secure a decent return, which is likely to be good news for savers.
In the weekly Money Tips newsletter, Money Saving Expert (MSE) explained: “The top accounts pay the highest interest we’ve seen in more than a decade.
“However, with inflation above 10 percent, prices are rising faster than even the best savings grow, so in real terms savings are shrinking.
“It’s therefore vital to maximise every penny of interest to minimise the shrinkage.”
MSE pointed towards the top one-year fix account likely to delight savers.
While the bank may not be as familiar, it has the full UK £85,000 savings safety guarantee should the worst happen.
This is under the Financial Services Compensation Scheme (FSCS) designed to help customers if a financial organisation failed.
The offer is made available by Ahil United Bank UK, which is sometimes referred to as a challenger bank.
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It is currently offering a 3.5 percent interest rate.
The rate is fixed for the one year period, providing a guarantee for those hoping to grow their money.
As a result, Britons will secure their interest at maturity – which means when the deal comes to an end after the one year period.
The minimum deposit on this account is £1,000, while savers can put away up to £85,000.
The account can be opened and managed online, but Britons should be aware no joint accounts are permitted.
To open the account, individuals will need to apply online through Raisin UK, but they will also need to meet eligibility criteria.
Firstly, the saver must be a UK resident who is aged 18 or over.
They are also required to hold a UK bank or building society account from which they will fund their application.
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Finally, individuals will need to have a valid mobile phone number and email address to be eligible.
Due to the fact this is a fixed term account, withdrawals are not permitted unless there is a serious exceptional circumstance.
As a result, people should be aware whatever money they put into this account is locked away for the full one year period.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.
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