Savings rates are rising! You can earn 0.72% on Easy Access Savings (if you’re quick)!
This is the news that savers have been waiting for: savings rates are on the rise!
This week saw the launch of a new tabletop easy access account paying an AER variable of 0.72%. But if you want it, you’ll have to act fast because it won’t be available for long. Here’s everything you need to know.
How can you earn 0.72% on easy-to-access savings?
If you’re looking for the highest easy-to-access savings rate, take note of the new Family Building Society Premier Saver Account. It currently pays 0.72% variable AER, which is the highest easy access rate we’ve seen in quite some time.
You can save £1,000 to £250,000 and you must open the account online. As it is easy to access, you can make as many withdrawals as you want, but you must withdraw at least £100 each time.
Interest is calculated daily and paid annually on January 31. Although the account currently pays the highest easy access rate, the interest rate is variable, so it can change at any time. If the rate drops, you’ll be notified ahead of time, giving you plenty of time to transfer your money to another savings account if you wish.
Why do savers need to act quickly to access the 0.72% rate?
It’s worth knowing that there’s a weird quirk with this account, which means you need to act fast if you want to secure the AER variable interest rate of 0.72%. This is because the account states that you can only add funds to it until 3 p.m. on Monday, February 7. After this “funding deadline”, you will still be able to withdraw money, but you will no longer be able to add funds to the account.
Therefore, if you have a large lump sum to save, you will need to put everything in the account before the deadline.
What easy access alternatives are available?
Because the Family Building Society account has a funding deadline, it won’t be to everyone’s taste.
Therefore, if you prefer a simpler account, you can check out Shawbrook Bank easy access account that pays a slightly lower variable AER of 0.67%. This account allows you to deposit between £1,000 and £85,000, and you can make as many withdrawals and deposits as you want.
Alternatively, if you have less than £1,000 to save, then the Marcus Online Savings Account is an easy-to-access account that pays 0.6% variable AER. This rate includes a fixed premium of 0.1% AER for 12 months. With Marcus, you can save from £1 (up to £250,000) and add or withdraw funds at will.
All of these easy access accounts have full FSCS savings security protection, up to the £85,000 limit. This means that if one of these providers goes bankrupt, your money is safe up to the limit. (Note that Marcus shares its FSCS protection with Saga, so don’t save more than £85,000 on those two providers).
For a full list of easy access options, check out our best easy access savings accounts.
Will other savings rates increase?
It’s certainly plausible that Family Building Society’s latest offering could encourage other providers to raise their rates. A more competitive savings market is great news for savers because it means higher interest rates.
As the Bank of England base rate is expected to rise again in 2022, this will also likely impact the savings market. Indeed, a higher base rate makes borrowing more expensive for lenders, which makes cash flow more attractive to savers. In other words, a higher base rate should lead to higher savings rates across the board. However, it remains to be seen if this will be the case.
How can I increase the interest rate on my money?
Although the AER variable of 0.72% is the highest easy-to-access savings rate we’ve seen in some time, if you want to earn an even higher rate, you might want to explore the possibility. to lock your money.
If you don’t need access to your money for a very long time, then Chartered Savings Bank offers an account paying 2.1% AER fixed for five years.
For more fixed options, see our list of top rated fixed rate bonds.
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