Vanquis Bank has increased the interest rate on its 90-day notice savings account to 5.35 percent, earning an “excellent” Moneyfactscompare rating.
The account can be launched with a minimum of £1,000 and interest can be paid monthly.
Notice savings accounts serve as a middle ground between easy access and fixed rates, allowing savers to access their funds after specific notice periods.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Vanquis Bank has increased the rate on its fifth issue of the 90-Day Notice Account this week.
“Now paying 5.35 percent the deal maintains its market-leading position in the notice and monthly interest sectors. Savers will need to invest a minimum of £1,000, however, withdrawals and further additions can be made for the duration.
“This account may also be an attractive option for savers who wish to boost their income, as there is the choice to opt for monthly interest.
“Savers must be prepared to give notification when wanting to access their cash because earlier access is not permitted. On assessment, this account receives an Excellent Moneyfacts product rating.”
While Vanquis Bank may be offering the top rate for notice accounts, competition doesn’t fall too hard behind.
LHV Bank’s 95-Day Notice Account, offered through Raisin UK, pays an Annual Equivalent Rate (AER) of 5.3 percent.
The account can be launched with a minimum deposit of £1,000 and up to £85,000 can be invested overall. Interest is paid on closure and partial withdrawals are not permitted.
Investec Bank plc places just behind with its 90-Day Notice Saver offering an AER of 5.25 percent.
The account can be launched with a minimum deposit of £5,000, up to £250,000 can be invested overall, and interest can be paid monthly.
Lucinda O’Brien, money.co.uk savings accounts expert urged savers to take advantage of the Bank of England’s Base Rate and move their money to high-interest savings accounts while they still can.
Ms O’Brien said: “The top deals are currently above five percent, which is more than double inflation and this gives your money more purchasing power. But, with inflation now at two percent, this could mean providers start dropping their rates even though the Base Rate remains frozen.
“The market is always changing, so it’s important to keep a close eye on interest rates.”
