Savers can get competitive 2.9 percent with easy access account

Suren Thiru discusses the rise in interest rates

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The Single Access Saver comes with a 2.9 percent rate on balances of £100 or more, or 0.1 percent for lower balances. Interest is calculated daily and paid annually at the end of the year.

Accounts can be opened in person or by post, with a minimum of £100, and a saver can deposit up to £500,000.

People can make a cash deposit by visiting a branch, sending a cheque or via a bank transfer.

However, customers can only make one withdrawal each year, which can be done without giving notice.

If a person makes a second withdrawal within a calendar year, the account will be automatically closed.

Customers can make withdrawals in cash at the branch, or by cheque or bank transfer to their nominated bank account.

Cash withdrawals have a daily limit of £500 and people can withdraw up to £3,000 if they have given three days’ notice.

The 2.9 percent rate is the highest rate for easy access savings accounts at the moment, followed by Coventry Building Society and Earl Shilton Building Society, who both offer 2.85 percent.

Buckinghamshire Building Society also offers 2.6 percent with its Triple Access Saver, which allows for three withdrawals a year.

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Other easy access savings accounts currently offering more than 2.5 percent include:

  • Al Rayan Bank – Everyday Saver (Issue 3) – 2.81 percent expected rate
  • Cumberland Building Society – eSavings Account (Issue 3) – 2.6 percent
  • first direct – Bonus Savings Account – 2.6 percent
  • Harpenden Building Society – Triple Access Saver – 2.6 percent
  • Atom Bank – Instant Saver – 2.55 percent
  • Tandem Bank – 2.55 percent.

The Bank of England has increased the base interest rate several times this year, providing a boost for many savers.

The base rate is currently at three percent and analysts expect it to continue to rise going into the new year.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, spoke about how inflation is factoring into the Bank of England’s decision-making.

She said: “The price spiral is tough, particularly with labour shortages fuelling wage growth and volatile energy prices to navigate.

“However, they no longer have to deal with the threat of a mass tax cut fuelled by a burst of stimulus.

“Instead, we have a new Chancellor flagging that spending will be reined in, just at the moment consumer confidence is plummeting and the housing market is going into shock.

“Inflation may well now peak above 11 percent with scorching food prices in particular pushing up expectations.”

The Bank of England’s next meeting of the Monetary Policy Committee meeting will be conducted on December 15, with many expecting a further base interest rate increase to be announced.

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