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- Savers earn a 4.85% ‘reward rate’ if they don’t withdraw money and 3.25% if they do.
Savers can get an easy-access savings deal at Atom Bank by paying 4.85 per cent, although it comes with a monthly interest penalty if the fund is tapped.
The bank, which launched in 2016, reduces the rate to 3.25 percent if savers dip into their fund even once and it “resets” to 4.85 percent the following month.
The idea, he says, is that savers can earn more if they don’t withdraw money while being rewarded with a higher interest rate.
Atom Bank’s new easy access rewards deal pays 4.85 per cent if savers don’t withdraw money and drops to 3.25 per cent if they dip into their pot.
There is no limit to how often savers will be able to access their money, they just won’t get the top rate if they do.
Atom’s rewards rate of 4.85 is currently beaten only by Oxbury Bank, which pays 4.87 per cent but only on balances over £25,000.
The account can be opened by downloading the Atom app and no minimum deposit is required.
All funds deposited into the Atom Reward Account are protected by the Financial Services Compensation Plan. This means your money is protected up to £85,000 should Atom Bank fail.
How does it compare to other easy access offerings?
Oxbury Bank’s easy access deal pays a slightly higher rate of 4.87 per cent, so this account is not suitable for anyone with less than £25,000 to put away.
Savings and investment app Chip offered the best easy-access deal on the market at 5 per cent, but this weekend it dropped to 4.01 per cent.
The next best easy-to-access deal is offered by Coventry Building Society, which pays 4.83 per cent.
Savers can access their money three times in a calendar year before being penalized by a rate cut.
If savers make a fourth withdrawal, they will receive a charge equal to 50 days of interest, depending on the amount they are withdrawing.
This account can only be opened online. Savers who open an easy access account with Coventry Building Society in a branch will earn a rate of 4.33 per cent.
Monument Bank’s easy access account pays 4.81 for deposits of £20,000 or more, while Aldermore Bank’s easy access account pays 4.75 per cent. Savers can only access their money twice with this account or the rate will drop to just 1.5 percent.
Rachel Springall, finance expert at Moneyfacts Compare, said: “The Atom Bank account ranks high in the highest rate tables and can be an attractive option for savers who don’t want to keep their money for too long.”
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