As the savings market as a whole is hotting up, the simple easy access account is joining in, with competition increasing in this key area. Recent weeks have seen a slow, steady increase in the best rates on offer and this week is no exception.
National Counties Building Society this week improved the rate on its 4th Issue Classic Saver to a market-leading 1.35% gross AER. It doesn’t come with a bonus, but it is fairly restrictive in that you have to deposit funds before 31 July 2018 - no new funds can be deposited after this date.
This may mean the account has a fairly short lifespan, as once you’ve withdrawn all your money, you can’t replace it – so it will then need to be closed.
Hot on the heels of this provider was Coventry Building Society, which on Friday (6th July) increased the rate on its Limited Access Saver, matching the National Counties rate of 1.35% gross/AER.
But it does come with a 0.35% bonus for 12 months and you’re restricted to just three penalty-free withdrawals per year – any more are subject to 50 days’ loss of interest.
And finally this week, Bank of Cyprus UK* issued a new version of its Online Easy Access Account. Issue 15 is sitting just under the two mentioned above, with a rate of 1.34% gross/AER. The previous issue 14 is paying 1.28% gross/AER and will continue to do so. And as you cannot open another issue of the Online Easy Access Account if you held one already within the last six months, I’m afraid you can’t simply switch to the new issue.
The previous market leader, the Post Office, upped its rate at the end of last month to pay 1.33% gross/AER on its Online Saver Issue 31. This rate however comes with a 1.08% bonus for the first 12 months. A hefty bonus, meaning you’ll need to move that money at the end of the bonus period or see your rate plummet.
The stalwart of the best buys is RCI Bank*, which continues to pay a competitive 1.30% gross/AER and doesn’t come with a bonus or restriction on withdrawals so is one of a few true simple, straightforward easy access accounts in the top five best buys. This is matched only by Shawbrook Bank, also paying 1.30% gross/AER, without restrictions.
It’s baby steps, as the providers are pipping each other by the smallest of margins and only time will tell if this boost in competition in the market will continue.
We certainly hope so as competition can only be a good thing for savers. Watch this space.
*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).
You might also like...
Understand the implications of when it's paid and how often, to really ensure you make your savings work effectively
Should I be moving some money awat from cash and investing? How do I pick a financial adviser?
A free guide to help you make savings simple by explaining the options available and how they work.