Multiple banks boost rates on savings accounts above 5%

Savers will be keen to see if their providers will pass on the base interest rate increase from the Bank of England this week, and several banks have already upped their rates.

The central bank increased the base rate from 4.5 percent to five percent in its ongoing battle to bring down inflation, which is good news for savers.

Here are some of the first providers who have today announced they are increasing their rates.


Aldermore has boosted the rates on a range of its fixed rate bonds, with the new rates coming into effect immediately.

The new rates include:

  • One Year Fixed Rate Bond to increase – 5.4 percent (up from 5.05 percent)
  • Two Year Fixed Rate Bond to increase – 5.45 percent (up from 5.10 percent)
  • Three Year Fixed Rate Bond to increase – Five percent (up from 4.9 percent)
  • Four Year Fixed Rate Bond to increase – Five percent (up from 4.9 percent)
  • Five Year Fixed Rate Bond to increase – Five percent (up from 4.9 percent).

Ewan Edwards, director of savings at Aldermore commented: “We’re delighted to offer increased rates today for both new and existing customers on a range of our fixed rate products.

“We’re eager to make our customers’ hard-earned cash go that extra mile, especially at a time when people are keeping such a close eye on their outgoings and finances in general.”

READ MORE Bank of England increases base interest rate to five percent[INTEREST RATES]

Paragon Bank

Savers with Paragon can enjoy boosted rates across several of the group’s fixed rate, ISA and notice savings accounts.

The provider has boosted rates across 10 accounts in total, including an 120-day notice account that now pays 4.6 percent. The rates come into effect from today, June 22.

The new rate include:

Fixed rate accounts

  • One year Fixed Rate account – 5.4 percent (up from 4.95 percent)
  • 18 month Fixed Rate account – 5.4 percent (up from 4.95 percent)
  • Two year Fixed Rate account – 5.45 percent (up from 4.95 percent)
  • New three year Fixed Rate account – 5.3 percent
  • Green three year Fixed Rate account – 5.3 percent (up from 4.85 percent)
  • Five year Fixed Rate account – Five percent (from 4.5 percent).

Fixed rate ISAs

  • Three year Fixed Rate ISA – 4.75 percent (up from 4.35 percent)
  • Five year Fixed Rate ISA – 4.65 percent (up from four percent).

Notice accounts

  • 120 day Notice account – 4.6 percent (up from four percent)
  • 180 day Notice account – 4.65 percent (up from 4.05 percent).

‌Derek Sprawling, savings director at Paragon Bank, said: “Savers have been increasingly moving their money into fixed-rate and notice accounts since the turn of the year and we believe these rates will provide an attractive option to those who are prepared to lock their savings away for a period of time.”

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Savers with Chase are also to benefit from an interest rates increase coming into effect next month.

The bank is upping the rate on its easy access saver account to 3.8 percent, up from 3.3 percent. The new rates will automatically be applied to existing and new customers from July 3.

Savers with Chase can earn interest on deposits up to £500,000, with the account linked to a Chase current account.

Shaun Port, managing director for Everyday Banking at Chase, commented: “We’ve increased the rate on our easy access saver account to help customers make the most of their money and support them in reaching their savings goals.

“We know customers value flexibility and instant access to savings, without being charged fees, so they can manage their money in a way that best suits them.

“Customers can make their money work even harder by taking advantage of earning interest on their current account balances – this is a smart way to earn interest on your salary before your mortgage, rent or bills leave the account.”


Shawbrook has today launched several new fixed rate ISAs including a two-year account with a rate of 4.93 percent.

Savers can deposit up to £20,000 a year into ISAs. They have the advantage that a person does not pay any tax on any interest they earn or on any income they derive from an ISA.

These are the new accounts:

  • One year fixed rate ISA 4.82 percent
  • Two year fixed rate ISA 4.93 percent
  • Three year fixed rate ISA 4.82 percent
  • Five year fixed rate ISA 4.65 percent.

Adam Thrower, head of Savings at Shawbrook, encouraged savers to take advantage of the “favourable” climate.

He said: “People who have previously set up a cash ISA now have the opportunity to elevate their savings to a new level, earning nearly double the interest.

“Someone with £40,000 (equivalent to two years of old ISA savings) could accumulate over £4,000 in just two years by transferring their funds to a new, market-leading fixed account.

“If you don’t need access to your cash over a fixed period of time, it’s quick and easy to switch, and people could be missing out on thousands of pounds by not doing so.”

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