Product Spotlight: Online easy access savings
An easy access savings account keeps your cash accessible and protected by the Financial Services Compensation Scheme (FSCS) if you save with a UK authorised bank. We have listed the best FSCS protected easy access savings accounts that can be opened online below:
• There are four savings providers offering the top easy access rate of 0.50% AER. The Online Easy Access Account (Issue 40) from Cynergy Bank includes a bonus rate of 0.20% for the first 12-months. The account can be opened and operated online, and interest is paid on anniversary. It can be opened with a £1 deposit. The SuperSaver Savings Account from ICICI Bank UK can be opened online, in branch and by phone and operated online, in branch, by post and through the ICICI Bank UK mobile app. You must also open an ICICI Bank UK HomeVantage current account. Interest is paid monthly, and there is no minimum deposit required to open this account. Thirdly, the Club M Saver from Virgin Money can be opened online and by phone. The account can be operated online, in branch, by phone and using the Virgin Money mobile app. You must also open a Virgin Money Club M Account. Interest is paid quarterly, and there is no minimum deposit needed in order to open this account.
Finally, the Easy Access – Issue 21 and Easy Access Postal – Issue 21 from Charter Savings Bank can both be opened with a £5,000 deposit. The former can only be opened and operated online, while the postal version can be opened online and by post and operated by post only. Interest for both accounts may be paid on anniversary or monthly.
• Next, we have Nationwide Building Society with the 1 Year Triple Access Online Saver 12 account which pays 0.45% AER on anniversary. If you make more than three withdrawals during the 12-month term the interest rate is reduced to 0.01% AER. This account matures after 12-months, but the interest rate could be changed at anytime. At the end of the term the account is reverted into a Triple Access Online Saver. The account can be opened and operated online and by Nationwide Building Society’s mobile app. There is no minimum deposit required to open this account.
• Lastly, we have Paragon Bank and the Triple Access Account (Issue 4) with a rate of 0.41% AER. If you make more than three withdrawals in a 12-month period, the interest rate is reduced to 0.25% AER. The account can be opened online with a £1 deposit. Interest is paid on anniversary or monthly. It can be operated online only.
Find more of the best easy access accounts on our chart.
EXCLUSIVE BONUS FOR SAVERS!
Raisin UK is offering an exclusive bonus for Moneyfacts.co.uk readers – savers who deposit £5,000 or more with Raisin UK can receive a bonus of £25, on top of the welcome bonus of up to £100, simply by using the code MONEYFACTS25 when registering. Find out more here. Terms and conditions apply.
Product spotlight: 10-year fixed rate remortgages
Interest rates on remortgages have never been lower so switching to a longer-term fixed rate deal could save you thousands in the long run. If you are not coming towards the end of your mortgage deal, make sure to check for any penalties to redeem your existing mortgage early.
• Virgin Money leads the way this week with a rate of 1.95% (2.7% APRC) fixed until 1 October 2031. After this the rate changes to 4.09% variable for the term. The product fee is £995 and there are free valuation and legal fees. The maximum loan-to-value (LTV) is 65%.
• Next is Barclays with a fixed rate of 1.99% (2.6% APRC) until 31 August 2031. After this the rate changes to 3.59% variable for the term. The product fee is £ 999 and there is a free valuation (up to £2m property value) or £250 cashback and legal fees. The maximum LTV is 60%. Speak to a broker about this deal.
• Lloyds Bank offers the next lowest rate at 2.08% (2.7% APRC) until 31 August 2031. After this the rate changes to 3.59% variable for the term. The product fee is £999 and there are free valuation and legal fees. Lloyds Bank Club Current Account holders also receive £200 cashback. The maximum LTV is 60%. Speak to a broker about this deal.
FEE-FREE MORTGAGE ADVICE
Get completely free mortgage advice from our preferred mortgage broker Mortgage Advice Bureau, exclusively available to Moneyfacts.co.uk visitors. Just follow this link or call 0808 149 9177.
Savers hit by rising inflation
Savings interest rates have started to stabilise with average rates not falling month on month for the first time since October 2020. However, with inflation now at 2.1% savers still cannot find an account that will protect their money from its eroding effects. We summarise the latest position for savers.
Should you increase your mortgage repayments or your pension contribution?
Those of us planning for retirement, whether in twenty, ten- or five-years’ time, may find a conflict between putting any spare cash towards reducing your mortgage balance or adding to your pension pot. A good starting point is to align your mortgage term to your target retirement date, helping to remove or reduce any debt going into retirement. It is a case of balancing the known interest cost of a mortgage with an unknown but potentially greater return from investing into your pension. Our preferred independent financial advisor Kellands Hale explains more and how the tax allowances of pensions and ISA could sway the differences. Furthermore all Moneyfacts.co.uk visitors can receive a free consultation about their savings and investments from Kellands Hale. Ts and Cs apply.
See the best interest rates for equity release
Homeowners over the age of 55 can release tax-free cash from their homes using a lifetime mortgage – a type of equity release. The combination of rising house prices and several lifetime mortgage interest rates falling this month, makes this type of equity release potentially appealing for those needing a cash boost. Plus, any borrowing using equity release does not need to be repaid until you enter long-term care or pass away. There are some downsides though, the value of your inheritance for loved ones may be reduced and the interest costs can mount up over time, especially if you choose not to make any repayments at all. Our preferred equity release broker, HUUB Financial Solutions can provide more advice about equity release and if it is right for you – call them on 0808 2398485. Find out more about equity release. We summarised the most competitive equity release interest rates in this news story.
Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from firstname.lastname@example.org. Be ScamSmart.
Deal of the week
£10 off mobile phone insurance
Insurance2go is offering £10 off all its annual mobile phone policies using code PHONE100FF. You can insure your mobile for cover in case of damage, breakdown, loss, and theft from as little as £3.49 per month. Cover is instance and there is unlimited claims for new and refurbished devices. Terms and Conditions apply.