Tandem Bank has raised the interest rate on its one-year fixed savings account to 5.12 percent, earning an “excellent” Moneyfactscompare rating.
The account can be launched with just £1 and up to £2.5million can be invested overall.
Commenting on the deal, James Hyde, a spokesperson at Moneyfactscompare.co.uk, said: “Tandem Bank has increased the rate on its One Year Fixed Saver by 0.05 percent.
“The account now pays 5.12 percent gross/AER and can be opened with just a £1 investment.
“Further additions are permitted for 14 days from account opening. The account can be opened online or via a mobile app and operated solely via the app. Overall, the deal earns an Excellent Moneyfacts Rating.”
Savers must be aged 18 and over to launch the account and interest is paid on the anniversary.
But while Tandem Bank may be offering a more competitive deal, it isn’t currently taking the top spot in the one-year fixed rate savings market.
The National Bank of Egypt (UK) Limited, offered through Raisin UK is offering an Annual Equivalent Rate (AER) OF 5.22 percent.
The account can be opened with a minimum deposit of £10,000 and interest is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not permitted until the term ends.
Al Rayan Bank places just behind with an Expected Profit Rate of 5.2 percent. Instead of paying interest to savers, Al Rayan Bank, as an Islamic bank, invests customers’ deposits in ethical, Sharia-compliant activities to generate a profit.
Profit rates are expected, however, the bank said it has always paid at least the profit rate it has quoted to its customers since it was founded in 2004.
Savers need a minimum deposit of £1,000 to launch the account and profit is paid on maturity. Up to £85,000 can be invested and withdrawals are not permitted until the term ends.
Close Brothers Savings, Ziraat Bank, and SmartSave place just ahead of Tandem Bank with AERs of 5.16 percent, 15.15 percent, and 5.13 percent respectively.
Despite the current period of high savings interest rates, hundreds of Britons are failing to cash in on the top deals. Experts at TotallyMoney are warning people may be losing out on more than £600 a year by keeping their money in low-paying accounts.
Alastair Douglas, CEO of TotallyMoney commented: “The average saver could be missing out on more than £600 per year — which is a considerable amount, given how much the cost of living has increased.
“The extra income could be used to cover bills and expenses, left in savings so it continues to grow, or be put towards a special purchase.
“Double check your rate and make sure your money’s working for you. Loyalty doesn’t pay, and if your bank isn’t paying you, then they’re making money from you.”
Mr Douglas added: “Don’t be worried about moving your balance to a smaller bank either, as long as they’re registered with the Financial Services Compensation Scheme, £85,000 of your money should be covered.”
