Savings account secures ‘lead position’ as bank increases interest rate
Martin Lewis discusses UK regulated savings accounts
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Atom Bank recently upped the interest rate being offered on its one year fixed saver. The account is now offering 0.85 percent gross/0.85 percent AER payable on anniversary.
It also offers a monthly interest option of 0.85 percent gross/0.85 percent AER available.
The recent rise in the rate was highlighted this week, in the Moneyfacts.co.uk Pick of the Week.
Eleanor Williams, Finance Expert at Moneyfacts.co.uk, analysed various deals, showcasing the “best of the latest products or rate changes to hit the consumer finance market”.
Commenting on Atom Bank’s one-year fixed account, Ms Williams said: “This week, Atom Bank has increased the rate payable on its One Year Fixed Saver account.
“Rising by 0.10 percent to 0.85 percent payable on anniversary, this update sees this account secure the lead position when compared to other fixed bonds with similar terms currently on offer.
“Furthermore, investors who are hoping to supplement their income may be pleased to note that there is the ability to take a monthly interest option as well.
“While early access is not permitted, savers are able to make further additions for one week from account opening, which could boost its appeal to some.
“Overall, the account earns an Excellent Moneyfacts product rating.”
There is a minimum opening amount for this account, which is £50.
The aforementioned rates are effective from May 11, 2021.
As it is a fixed rate account, they won’t change until the end of the product term of 12 months
Atom Bank customers can save up to £100,000 with the bank, although this can be split over as many accounts as they like – as long as a minimum of £50 is deposited in each account.
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Access isn’t permitted from this account during the fixed term.
“Once you put money into a Fixed Saver, you can’t get it out until the fixed term ends,” the bank states.
Savers have one week from account opening to make additional deposits.
The account can be opened via its mobile app, which is where it is also managed.
The bank states the minimum applicant age is 18.
Atom Bank also offers an easy access account, named the Instant Saver.
It currently pays an interest rate of 0.5 percent AER/gross.
There’s no minimum amount, although the limit of holding £100,000 in savings with Atom Bank does apply.
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