Savers finally benefit from improving rates following the 1.5% rate from the Marcus account launched online by Goldman Sachs in September.
RCI Bank, which is French-owned has now raised its Freedom Account’s rate to 1.37% and, although it’s typical for banks to only apply raised rates to new customers, the RCI Bank account is giving all savers the benefit of this new increased rate.
The move has been matched by Ford Money, which is also paying the same 1.29% rate to all its Flexible Savers. Smaller building banks and building societies have been scrambling to compete with Marcus’s 1.5% deal since it was launched on 27 September because it pushed easy-access rates to their highest level for two years. The online Marcus account also includes a 0.15% fixed bonus payable for the first year.
Charter Savings Bank launched its new Easy Access account, which pays 1.4%, within hours of Marcus’s arrival. Then, Shawbrook Bank quickly followed by raising its rate for new Easy Access savers to 1.4%. And in the interim, Paragon Bank has also launched a new Limited Edition Easy Access account issue, at 1.37%, while OakNorth Bank’s latest Easy Access account is paying 1.3%.
Kent Reliance Easy Access and AA Savings Member Saver are also up to 1.37%. No restrictions apply to the number of withdrawals that can be made your money is covered by the UK Financial Services Compensation Scheme (UKFSC) to the value of £85,000, or £170,000 on joint accounts.
If you are opening an account, whatever your savings goals, finder UK can help you find one to suit you. The rates that are available on the High Street may be slightly higher, but the arrangements tend to be much more complicated. For example, the rate on a Co-op Bank’s Britannia Select Access Saver issue 9 has been raised to 1.2%, but savers are limited to just four withdrawals in each calendar year.
Other High Street deals include Virgin Money Easy Access Saver at 1.16%, Coventry Building Society Easy Access Saver 5 1.15%, and Family Building Society’s Branch Saver is paying 1.21%. It’s worth noting, however, that Family BS has now also launched a new Premium Saver, which as well as being available online, can be opened at its Epsom, Surrey branch or through the post. It pays 1.45% on a minimum £5,000, but it’s only going to be possible to add money until 7 December this year.
Prior to the launch of Marcus, the average rate offered by competitors was just 0.55%.