The interest rates on savings accounts are rarely being boosted due to the Bank of England’s base rate. This is being held at 0.1 percent, despite the increase of inflation over the past few months.
However, things may be looking up for savers as one bank has increased their interest rates to appeal to more Britons.
Today, Aldermore Bank has increased rates on a number of Fixed Rate Savings and ISA products.
They are providing customers with increasingly competitive returns for their short, and long-term savings goals.
Ewan Edwards, director of savings at Aldermore Bank said: “It’s never been a better time to start thinking of those longer-term goals and getting the best out of your savings.
“Planning ahead is so important and by looking at fixed rate savings options, your money has more time to grow which will pay dividends in the future.”
Their Fixed Rate Savings accounts provide competitive long-term rates that protect your hard-earned money from interest rate fluctuations.
This will allow peace of mind as to how much interest someone earn:
• 1 Year Fixed Rate to be increased to 0.95 percent from 0.70 percent
• 2 Year Fixed Rate to be increased to 1.00 percent from 0.85 percent
• 3 Year Fixed Rate to be increased to 1.10 percent from 1.00 percent
• 4 Year Fixed Rate to be increased to 1.15 percent from 1.05 percent
• 5 Year Fixed Rate to be increased to 1.30 percent from 1.25 percent
Their Fixed Rate Cash ISAs give someone guaranteed interest rates over a choice of fixed terms.
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All of the interest one earns is tax free and doesn’t count towards a Personal Savings Allowance:
• 1 Year Fixed Rate Cash ISA to be increased to 0.75 percent from 0.65 percent
• 2 Year Fixed Rate Cash ISA to be increased to 0.90 percent from 0.85 percent
• 3 Year Fixed Rate Cash ISA to be increased to 0.95 percent from 0.90 percent
Aldermore’s increased fixed rates won’t change for the term.
They guarantee to pay the interest rates shown, provided a deposit is paid into the account within 14 calendar days of the account being opened.
If the interest rates have increased by the time the first deposit is received, people will automatically receive the higher rate.
Account holders have described the savings account as “easy to open” as they are able to manage this online and are overall “satisfied with the service”.
Mr Edward continued: “Savings is the lifeblood of long-term financial health as it can provide both a buffer for the unexpected and be a gateway to realising future goals.
“After long periods of being able to reflect on their next life steps through subsequent lockdowns, many people will be feeling a sense of pent-up energy to start living their lives again.
“So, we want to provide savings platforms that will give them the step up to realising those plans.”
Rachel Springall, a Finance Expert at Moneyfacts, commented on the market at the moment and said: “The savings market continues to move in a positive direction as rates across most of the savings spectrum improve at a slow and steady pace.
“Providers and savers alike will need to keep a close eye on the ever-changing market by monitoring the top rate tables.
“The consecutive rate rises across much of the savings spectrum are green shoots of life to a market that felt barren only a few months ago and there is no telling how long a good deal will last.
“It is evident that savers have disposable income to put aside and some may be using their pot to supplement their income, so it is hoped providers will inject more competition in the months to come to encourage consumers to take advantage.”