Beehive Money has launched a new limited issue easy access savings account paying an interest rate of 5.1 percent, earning an “excellent” Moneyfactscompare rating.
Beehive Money is a trading name of the Nottingham Building Society and savers can open the mutual’s “competitive” account online with a minimum deposit of £1,000.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Beehive Money has launched a new Limited Issue Easy Access Issue Three. The account pays 5.1 percent, taking a competitive position within its sector.
“This account is available to those who have a minimum of £1,000 to invest.”
However, Ms Eastell noted: “This deal has an introductory bonus rate of 2.45 percent, which expires on January 14, 2025, so it may be sensible for savers to review the account before expiration.
“Overall, this receives an Excellent Moneyfacts product rating.”
But while Beehive Money may be offering a more competitive deal, it isn’t currently taking the top spot. Topping the board of easy access savings accounts is Metro Bank’s Instant Access Savings Account with an Annual Equivalent Rate (AER) 5.22 percent.
A minimum of £500 must be deposited within 28 days to earn the limited edition rate and interest is paid monthly. Access is allowed at any time in a branch, online, or by phone.
Ulster Bank’s Loyalty Saver falls just behind with an AER of 5.2 percent on deposits of over £5,000. Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent.
Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
For savers with a smaller deposit, Cahoot’s Simple Saver (Issue Two) is offering an AER of 5.12 percent.
Cahoot, which is a division of Santander, offers savers the deal from a minimum deposit of just £1. Interest is calculated daily and can be paid annually or monthly and withdrawals can be made at any time by transfer to another account.
New research by Shawbrook Bank found two in five savers (40 percent) don’t know how much money they’re earning – if any – on their savings.
More worryingly almost a quarter (24 percent) of savers are earning two percent or under whilst the average rate for an easy access account currently stands at 3.18 percent.
Adam Thrower, head of savings at Shawbrook said: “Given that the Bank of England says it expects inflation to continue to fall to around 4.5 percent by the end of 2023 and keep falling throughout 2024, it’s reasonable to assume that interest rates on savings are perhaps as good as we’re going to get if those predictions remain.
“If you don’t know what you’re earning on your savings, it’s likely you aren’t earning much and therefore you could be losing out on hundreds of pounds. Move your money now before it’s too late.”
