Economy

Gatehouse Bank launches new best-buy savings rate of 2%

The products in this article have been independently selected by This is Money’s specialist journalists. If you open an account with links marked with an asterisk, This is Money earns an affiliate commission. This should not affect our editorial independence.

Gatehouse Bank has launched an easily accessible savings account at a 2 percent rate as deals continue to improve on the Bank of England’s interest rate hikes.

It can be opened online and pays the highest rate on deposits between £1 and £250,000. It is the first time in about ten years that an easy-access offers 2 percent.

Deposits are protected up to £85,000 per person under the Financial Services Compensation Scheme, or £170,000 for couples.

Someone who deposits £10,000 into the account will receive £200 in interest after one year.

 

Gatehouse's offering is expected to encourage other providers to increase the rates they offer to savers as interest rates continue to rise.

Gatehouse’s offering is expected to encourage other providers to increase the rates they offer to savers as interest rates continue to rise.

Despite the gains, it’s still about 8.1 percentage points below the consumer price index inflation measure, and no bill comes close.

James Blower, founder of The Savings Guru, said: ‘It’s a bold move by Gatehouse to move so far out at the top, but it will probably encourage others to move now too.

“Al-Rayan has been the leader for several weeks, but providers have closed the gap behind them, so it was only a matter of time before someone came above them.”

He adds: ‘With the expectation that the base interest rate will rise again on September 15, there is a good chance that other providers are anticipating an increase.

“It’s good news for savers that rates are finally going up. Gatehouse is still a relatively small bank, so it is unlikely that this rate will be available for more than a week or two unless other providers respond, as they cannot accommodate a large influx.”

Savers can choose to have their winnings deposited monthly or annually into the easily accessible savings account or another designated account in their name.

The notes state that the winning percentage on the account is variable and can be changed once customers have been notified 30 days in advance.

With an easily accessible account, savers can withdraw a portion of all their funds at any time or increase their deposit by at least £1 at any time.

Because of their flexibility, they offer lower rates compared to a cancellation account, which often prohibits funds from being removed from the account less than a year after opening.

To apply for an account you must be at least 18 years old, UK resident (or UK tax resident).

Once opened, the account can be managed 24/7 online or with Gatehouse’s savings app.

Gatehouse’s deal overtakes Al-Rayan Bank’s top spot on our independent This is Money best buy table, with a payout of 1.9 percent.

However, both fall short of the savings platform, Raisin currently offers a way for savers to effectively bypass the best deal and earn returns of more than 2 percent.

Raisin* currently offers a £30 Welcome Bonus to This is Money readers, but they need to open a new Raisin account via this link* or a link that comes from our website.

It offers savers the chance to increase their savings by £30 when they open and fund an account in its marketplace with a minimum of £10,000.

The highest paying, easily accessible deal is offered by its partner bank, UBL, and pays 1.76 percent.

For a saver opening their first Raisin account and depositing £10,000 into this deal, that could result in an effective return of 2.06 percent (£206 after one year).

Meanwhile, savers can earn a top 3.5 percent over 12 months with Raisin and its exclusive deal with Ahli United Bank – this can be increased to 3.8 percent with the link*.

Advertisement

Source: Dailymail

 

 

Related Articles

Back to top button