Bank announces ‘significant rate rise’ on savings account – ‘Attractive option’

Inflation forecast: Expert discusses rise

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The Bank of England Base Rate remains at a record low of 0.1 percent and recent Consumer Price Index (CPI) figures have shown a surge in the rate of inflation in the UK. As such, seeking the best interest rates out there is a priority for many savers at the moment.

Thankfully, there’s several websites out there which monitor the different interest rates offered on the savings market.

This includes Moneyfacts.co.uk, and this money comparison website has once again highlighted the best of the latest products or rate changes in terms of consumer finance this week, via the Moneyfacts.co.uk Pick of the Week.

Finance Expert at Moneyfacts.co.uk, Eleanor Williams, has analysed a number of deals, as well as showcasing some of their perks.

Oxbury Bank’s Personal Two Year Bond Account – Issue Three was named within this week’s savings Pick of the Week.

“Amongst various changes to its range of Personal savings accounts, Oxbury Bank has applied a significant rate rise on its two-year Personal Bond account,” Ms Williams said.

“Increasing by 0.45 percent this week, this account now pays a rate of 1.15 percent on anniversary which secures it a place towards the top of our tables and ensures that this may be an attractive option for savers who are happy to secure their funds away for the two-year term in order to receive a decent return.

“As may be expected in the fixed bond market, early access is not permitted, however, further additions can be made within 14-days of opening the account, which may be of interest to some.

“Overall, this account receives an Excellent Moneyfacts product rating.”

For this account, there is a minimum opening amount of £1,000.

The maximum investment amount is £500,000.

As Ms Williams mentioned, with this fixed rate account, is possible to make further additions within 14 days of the account opening, with this done via nominated account.

The account should be opened online and it can be managed both online and via the bank’s mobile app.

Moneyfacts explained that the Oxbury App is required to use online banking.

There is a minimum age to apply for this account, and this is 18 years old.

It’s important to note an initial deposit must be made within 14-days of account opening, or the account will automatically close.

Ms Williams also highlighted Coventry Building Society’s Fixed Rate ISA (133) 30.09.22.

“Savers who are looking to make the most of their tax-free savings allowance may wish to note the rate increases applied by Coventry Building Society to its Fixed Rate ISAs as part of its latest range update this week,” she said.

“Following an increase of 0.20 percent, the one-year fixed option now pays 0.61 percent yearly, and following the rate increase this deal now moves further up our top tables when compared against other fixed ISAs with similar terms.

“Early access is only available on closure and is subject to a 120-day loss of interest penalty, so careful planning would be advised, however, further additions can be made within 14-days of account opening or while the issue remains open, whichever period is longer, which may be a benefit for some investors.

“The account secures an Excellent Moneyfacts product rating.”

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