New easy-access savings best buy launched by Aldermore Bank: Can it attract one of the billions sitting in interest-free accounts?
- Aldermore’s Double Access Saver now pays savers 1.25%
- Cynergy Bank and Zopa Bank are the second co-payers at 1.2%
- A staggering £265billion currently sits in non-interest bearing accounts
- Majority of cash in easy-to-access accounts earning less than 0.1%
Aldermore Bank has risen to the top of the This is Money independent savings tables with an easy access rate of 1.25%.
Aldermore’s Double Access Saver previously paid customers 0.95%, but now sits 0.05% more than the next best deal on the market.
Savings rates have followed an upward trajectory in recent months. Two weeks ago, Zopa Bank and Cynergy Bank started paying 1.2% on their easy access accounts.
King of easy access savings: Aldermore’s account pays 0.05% more than the second best savings account in our ranking.
Earlier this month, Marcus Bank also raised the rate on its popular Easy Access Savings Account.
Fixed rates also increased. There are now 10 one-year deals paying 2% or more. They hadn’t been this high for three years.
And we saw a slew of better paying regular savings offers, including 3.5% from First Direct.
Despite all this, a staggering £265billion currently sits in non-interest bearing accounts, according to the latest data from the Bank of England.
Nearly £1 trillion is held in easy-to-access savings accounts and according to the latest CACI figures – which capture savings data from over 30 major providers – 68% of the cash languishing in these accounts report less than 0.1%.
With inflation at 7%, its highest level in 30 years, savers will lose value in real terms whatever they do. Switching to a better rate will at least limit the damage.
Becoming 5.75% poorer using Aldermore, versus 7% poorer, should be reason enough for savers.
Although Aldermore now counts at the top of our easy-to-access Best Buys chart, it’s important to point out that it does have some limitations.
To ensure that the 1.25% rate continues to be paid, savers should not make more than two withdrawals per year.
For anyone who withdraws three or more times in the same year, your rate will drop to 0.1%.
You will also need £1000 to start and then you can deposit up to £1 million into the account.
But it’s worth remembering that your money will only be protected by the FSCS up to £85,000, or up to £170,000 in the case of joint accounts.
Someone who hides £20,000 in Aldermore’s account can expect to earn £250 in interest over the course of the year – as long as they don’t make more than two withdrawals.
Savers looking for an account with no restrictions or fees on withdrawals will likely be more tempted by offers from Cynergy Bank and Zopa Bank paying 1.2%.
However, savers looking for an even better return from an easy-to-access offer can still do so.
JP Morgan’s Chase Bank offers a savings account, linked to the Chase checking account – which is an app only – offering a rate of 1.5%.
The same £20,000 in this account would return £302 after one year.
Any savings deposited into the Chase Linked Savings Account are protected up to £85,000 by the Financial Services Compensation Scheme and savers can access their savings as often as they wish with no fees, charges or loss of money. interests.
Although you need to create a checking account, it doesn’t have to be a primary account to qualify for the linked savings offer – so you can set it up as a backup sub account only.
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