Good news for savers as bank increases interest rates on ‘tempting’ accounts

Martin Lewis lays out the best savings deals available

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The new year has seen many banks beginning to up the interest rates on their savings accounts, for a variety of reasons. Account benefits are also on the rise as savers are encouraged to take hold of deals while they can.

Finance website shared their top picks of rate changes to hit the consumer finance market that received the Moneyfacts Excellent rating this week.

Atom Bank

Atom Bank announced rate increases of up to 0.55 percent rate on their selection of fixed savers accounts. 

After these increases are implemented, the top interest rate will be their two-year product with 1.60 percent   

The two-year product will be increased by 0.23 percent and secures its competitive position alongside alternative bonds offered with similar terms. 

Resident finance expert at Moneyfacts, Eleanor Williams, shared her insight on this product: “There is also a monthly interest option on offer, which could further tempt those looking to supplement their monthly income. 

“As is common in the fixed bond market, early access to funds is not permitted, however, further additions can also be made for one week from account opening.”

The minimum opening amount of this account is £50 with a maximum of £100,000 and no access is permitted during the two year term. 

Oxbury Bank

Leading the way for Notice Accounts, Oxbury Bank recently reduced their rate and still remain at the top of the market.

The account currently offers one percent monthly interest with Ms Williams noting this attractive rate “could tempt savers”.

This account requires 95 days notice before savers can access their funds, providing some flexibility for those that may need it.

The minimum investment amount is £1,000 and the maximum being £500,000.  

Close Brothers Savings

Close Brothers, like Atom Bank, have increased the rates across an array of their products this week. 

Currently, the fixed rate cash ISA is their best product on offer with 0.90 percent interest payable on maturity. 

The interest rate for the ISA was increased by 0.05 percent and offers more flexibility than normal fixed or notice accounts. 

Additionally, the ISA aspect of this account could be enough to convince many savers to utilise this opportunity. 

The ISA provides all interest tax-free although savers should be wary not to exceed the annual ISA threshold which is calculated across all of their ISA accounts. 

However, the biggest catch for this account is the minimum investment amount of £10,000. 

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