Atom Bank launches best one year fixed rate bond seen since February 2016
This week Atom Bank launched a new 1 Year Fixed Saver paying 2.05% gross/AER – stretching further ahead of its nearest rival, OakNorth (paying 1.87%). This new bond is now offering the highest rate seen for this term for almost two and a half years.
Although the account won’t be for everyone, as you have to apply via a mobile app, it is really encouraging to see Atom Bank pushing one year fixed rate bonds back above 2%.
As our Savings Index below shows, best buy rates on fixed rate bonds across the board have risen steadily since a low point in October 2016, following the base rate cut in August that year. However, they do still have some way to go before they get back to the heady heights of pre Funding for Lending.
Since October 2016, best buy one year fixed rate bond rates have increased by 46% and three year fixed rate bonds have increased by 40%.
This new rate from Atom Bank is paying more than the best five year fixed rate bond option back in October 2016.
We hope that other providers will respond to this challenge – pushing rates up further still.
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