Base interest rate increase for savers: the best easy access account now pays 4.21% and the best fixed rate deal hits 5.85%
- The best easy access rate now pays 4.21%, while the best one-year fix pays 5.78%
- There is also a 3-year fix that pays 5.85% and a best cash Isa that pays up to 5.05%
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Savings rates have continued to rise in the wake of the Bank of England’s key interest rate hike last week.
There are now 11 banks and building societies that pay 4 percent or more for easily accessible deals.
Meanwhile, fixed rate deals are also on the rise. According to Moneyfacts, the average fix for a year has increased from 4.49 percent on Thursday to 4.61 percent today.
The best one-year fix now pays 5.78 percent, while the best longer-term deal pays 5.85 percent over three years.
– Check out the best fixed rate savings deals here.
The one-year average fix is up from 4.49% on Thursday to 4.61% as of today.
The Bank of England raised key interest rates by 0.5 percentage point to 5 percent on Thursday, in its latest move to tackle stubbornly high inflation.
The decision marked the bank’s 13th rate hike since December 2021, resulting in the strongest increase since 1989 — a jump of 4.9 percentage points over 18 months.
Some banks seemingly pre-empted the Bank of England having already raised their savings rates in the days leading up to the decision, but many more have since made changes.
Think of the app savings and investments, chip*which today raised its instant access savings rate to 4.21 percent.
Below Chip, is GB bank*which is currently offering an easily accessible 4.15 percent deal through the savings platform Raisin UK.
Principality Building Society has increased its Double Access account to also pay 4.15 percent – though savers are limited to two withdrawals per year.
Savers who put £10,000 into Chip’s deal can expect to see £421 in interest over the next month – if rates stay the same.
– Check out the best easily accessible savigs rates here.
The best one-year and two-year fix both pay 5.78 percent – courtesy of Oxbury Bank.
Someone who invests £10,000 in the best year can expect to earn £578 in interest over the next 12 months.
Before the base rate, only Ahli United Bank paid 5.7 percent. Eight providers now pay 5.7 percent or more.
The highest paying flat rate deal is offered by Recognize bank and pays 5.85 percent over a three-year period.
Someone who puts £10,000 into this account can earn £1,860 over the next three years.
What other notable changes have happened?
It wasn’t just at the top of the best buy savings charts where the action took place. Various banks and building societies decided to take action after the increase in the base interest rate.
Lloyds Bank launched two fixed cash Isa deals that offer depositors tax-free interest of up to 5.05 percent.
– Check out the best cash Isa rates here.
Challenger banks Chase and Monzo raised rates on their instant access linked savings accounts.
Monzo customers saw the coupled low-threshold rate immediately rise from 3.4 percent to 3.7 percent. From July 3, Chase’s 1.6 million UK banking customers will see interest rates rise linked savings account from 3.3 percent to 3.8 percent.
Atom raised its easily accessible savings rate from 3.2 percent to 3.95 percent, while Zopa increased its deal from 3.52 percent to 3.92 percent.