Savings account tops the best buy table with interest rate of 3.95%

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Atom Bank’s new Fixed Saver account has been launched to offer savers more choice and flexibility in the current market and comes with an attractive rate of 3.95 percent AER. Just last week, Atom increased the rate on its Instant Access Saver to 2.55 percent AER following the latest interest rate hike from the Band of England.

Atom said people may not want to lock their money away for long periods during the current cost of living crisis, particularly as the government continues to raise interest rates in an attempt to tackle soaring inflation.

Customers only need £50 to benefit from Atom’s nine-month Fixed Saver but they won’t be able to withdraw their cash until the end of the nine-month term. 

Mark Mullen, Chief Executive Officer at Atom, said: “With rising inflation, customers want better rates and more choice. 

“Their money needs to work harder for them.”

He continued: “We understand that not everyone wants to lock their cash away for years, so we’ve launched the nine month product to help those who may have more short-term goals.

“We’re not here to catch people out either, so like all of our products this is easy to open, with no hidden requirements.

“While many high street banks are refusing to pass on rising rates to savers, we continue to be the bank that does.

“Now more than ever, loyalty to your bank can be bad for your financial health, and we think it’s important that people understand that their bank may be taking advantage of them.” 

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Meanwhile, Chase hiked the interest rate from 1.5 percent to 2.1 percent on its saver account last month – which can be accessed at any time.

Shaun Port, Managing Director for Everyday Banking at Chase, said: “We’re increasing the rate on our saver account to help new and existing customers make their money work harder, in what we know is a challenging time for everyone.

“With costs increasing, having greater flexibility and access to savings, without being charged fees, is increasingly important for people when managing their money.

“The Chase saver is linked to Chase’s current account, which offers one percent cashback on everyday debit card spending for a year and five percent AER interest on small change round-ups.”

Marcus by Goldman Sachs’ Online Savings Account now offers an AER of 2.5 percent and is rated by Moneyfacts as one of its “top pick” accounts.

This could be an option for savers looking to make use of their ISA allowance.

Commenting on the deal, Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “The deal now becomes one of the top rates within its sector and may entice savers looking for flexibility with their cash, while also taking advantage of their ISA allowance.”

“As the deal carries a bonus for 12 months, savers would be wise to make note and review the account before this expires.”

HSBC also has a new easy-access interest rate offering savers a three percent return on savings of up to £10,000.

The bank has increased the interest rate on its Online Bonus Saver from 1.6 to three percent on balances up to £10,000 if savers don’t withdraw their cash.

Savers need to be existing HSBC banking customers to qualify for an Online Bonus Saver account.

Those who aren’t existing HSBC customers can simply apply for an HSBC bank account in order to benefit.

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