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Gatehouse Bank has launched an easy-access savings account with a 2 per cent rate as deals continue to improve off the back of Bank of England rate rises.
It can be opened online and will pay the top rate on deposits between £1 and £250,000. It is the first time an easy-access has offered 2 per cent for around a decade.
Deposits are protected up to £85,000 per individual under the Financial Services Compensation Scheme, or £170,000 for couples.
Someone who deposits £10,000 into the account will receive £200 interest after a year.
Gatehouse’s offer is expected to push other providers to raise the rates they offer to savers as interest rates continue to rise.
Despite the rises, this is still some 8.1 percentage points under the Consumer Prices Index measure of inflation, with no accounts coming close to matching this.
James Blower, founder of The Savings Guru, said:’ It’s a bold move from Gatehouse to go so far clear at the top but is likely to spark others to move too now.
‘Al-Rayan have been the leader for several weeks but providers have been closing the gap behind them so it was only a matter of time before someone moved above them.’
He adds: ‘With the base rate expected to go up again on 15 September, it’s likely we will see other providers moving upwards in anticipation of this happening.
‘It’s great news for savers that rates are finally going up. Gatehouse are still a relatively small bank so it’s unlikely this rate will be available for more than a week or two, unless other providers react, because they won’t be able to take a large inflow on it.’
Savers can choose to have the profit on their sum paid monthly or annually into either the easy-access savings account, or another nominated account in their name.
The bank notes says the profit rate on the account is variable and can be changed once customers have been given 30 days’ notice.
An easy-access account allows savers to withdraw part of all of their funds at any time, or increase their deposit at any time by at least £1.
Because of the flexibility they offer lower rates compared to a notice account which often prohibit funs being removed from the account less than a year after opening.
To apply for an account you must be at least 18 years old, a UK resident (or resident in the UK for tax purposes).
Once opened, the account can be managed online 24/7 or using Gatehouse’s savings app.
However, both fall short of the savings platform, Raisin, is currently offering a way for savers to effectively leapfrog the best deal and bag more than a 2 per cent return.
It offers savers the chance to boost their savings by £30 when they open and fund an account on its marketplace with a minimum of £10,000.
Its best paying easy-access deal is offered by its partner bank, UBL, and pays 1.76 per cent.
For a saver opening their first Raisin account and depositing £10,000 into this deal, that could result in an effective 2.06 per cent return (£206 after one year).
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