The best savings rates that only last FIVE DAYS: Why you need to act fast to grab the best deals before they’re gone
Savers should act quickly to grab the best rates, as they can disappear after just five days.
The best easy access rate is now 0.75% with Atom Bank, with other new banks also offering 0.7% or more.
That’s up to 74 times more than you can earn with the big High Street banks, who still pay as little as 0.01%.
Smaller banks often attract more money than they need when their accounts top the best buy charts. And once their quota is reached, they close their doors to new savers.
But smaller banks often attract more money than they need when their accounts top the best buy charts.
And once their quota is reached, they quickly close their doors to new savers.
Ford Money raised its rate to 0.73% this month, but then closed the account to new customers five days later.
Aldermore’s best 0.75% deal went on sale for seven days. Meanwhile, Charter Savings Bank, traditionally among the top payers, closed its account to new savers last Thursday. Cynergy Bank followed suit a day later.
Those who already have an account will be able to continue paying in cash.
But there are still great deals for new savers from a handful of smaller banks like Atom. RCI Bank has raised the rate on its Freedom account to 0.7%, while Shawbrook is paying 0.72% on its easy access account, which was opened to new savers last Friday.
And Investec’s online Flexi Saver pays 0.71%.
Rates are rising slightly after the Bank of England’s base rate hit 0.5% this month.
Since then, Treasury-backed National Savings and Investments has raised the rate on its direct savings and easy-to-reach income bonds to 0.5%, which has helped revive competition for our savings.
You can open National Savings and Investments Direct Saver online or by phone. You can also open its income bonds by mail.
But big banks, including Barclays Everyday Saver, Lloyds Easy Saver and Standard Saver, Halifax Everyday Saver and Instant Saver, continue to pay savers a paltry 0.01% interest – or 10p interest a year for each tranche £1,000 into your account.
And they hold the bulk of the £974bn in easy access accounts, earning an average of 0.1%. With inflation at 5.5%, you see your money depreciating at 5.49% per year.
Your money with the new banks is as safe as with the big banks. You get the same compensation if the bank gets into trouble under the Financial Services Compensation Scheme, up to a maximum of £85,000 – or £170,000 on joint accounts.
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