Tandem Bank has increased the interest rate on its instant access savings account this week to 4.65 percent, earning an “excellent” rating from Moneyfactscompare.
Savers don’t need a minimum deposit to launch an account and interest is paid on a monthly basis.
Commenting on the deal, Rachel Springall, finance expert at Moneyfacts, said: “This week, Tandem Bank has boosted the rate offered on its Instant Access Savings Account.
“The account now pays 4.55 percent gross monthly and takes a prominent position in the market. Savers can also add 0.35 percent as a Top Up rate for 12 months, which adds to its appeal.”
Ms Springall added: “If investors take advantage of the Top Up rate, it’s important they review the offer near its expiry. Overall, this receives an Excellent Moneyfacts product rating.”
People can invest up to £250,000 in the account overall and can make unlimited withdrawals at any time without facing a penalty charge.
The account is completely app-managed and as a fully regulated bank, up to £85,000 worth of funds are protected by the Financial Services Compensation Scheme (FSCS).
But while Tandem Bank may be offering a particularly attractive deal, it isn’t currently the top rate available. Cynergy Bank’s Online Easy Access Account (Issue 65) boasts an Annual Equivalent Rate of 4.8 percent.
Savers can open the account online with a minimum deposit of £1 and up to £1million can be invested overall.
The interest rate includes a 0.75 percent fixed bonus for the first 12 months, after which the interest rate will revert to 4.05 percent.
Interest is calculated daily on the cleared balance and paid annually on the anniversary of the initial deposit.
Savers must be aged 18 or over and be UK residents to launch an account and withdrawals can be made at any time.
Oxbury Bank is also offering an AER of 4.8 percent for a slightly larger opening deposit of £1,000.
Offering ample flexibility, savers can also withdraw funds whenever needed without restrictions.
Interest is calculated daily and paid monthly, and up to £500,000 can be invested in the account overall. Savers must be aged 18 or over and have a UK current account the saver can be linked to.
