Savers are being offered a boost as some banks unveiled new deals on Friday.
First Direct is launching a one-year fixed-rate savings account with a rate of 4.60% AER (annual equivalent rate), from Tuesday May 30.
The deal is only available to First Direct customers with a 1st account current account. The bank is currently offering £175 cash to switch to its current account, subject to terms and conditions.
Customers can save any amount between £2,000 and £1 million in the new savings account, and can open multiple fixed-rate savings accounts if they wish to. The account must be opened by phone, First Direct said.
This new account launch is just one of a range of measures we’re introducing in the next few weeks
Lloyd Robson, First Direct
The new deal will sit alongside First Direct’s existing range of savings products.
Lloyd Robson, head of banking and propositions at First Direct, said: “This new account launch is just one of a range of measures we’re introducing in the next few weeks.”
Savings rates have been creeping up as the Bank of England base rate has increased.
Financial information website Moneyfacts said it is possible for savers to find fixed-rate savings deals above 5%.
Shawbrook launched a one-year fixed-rate bond on Friday, paying 5.06% AER and a one-year fixed-rate Isa at 4.43% AER.
It has also increased rates to 3.55% AER for its easy access Isa and 3.75% AER for its easy access account.
Shawbrook’s 5.06% savings product was sitting at the top of Moneyfacts’ “best-buy” tables on Friday, for comparable one-year fixed deals.
According to Moneyfacts’ records, Investec Bank is offering a fixed two-year bond at 5.15% AER.
Marsden Building Society was also on Moneyfacts’ top tables for variable rate cash Isas, with a deal at 4.00% AER.
Easy access accounts, notice accounts and one-year fixed bonds have improved, thanks to a combination of the Bank of England base rate rises and provider competition
James Hyde, Moneyfacts
James Hyde, a spokesman for Moneyfacts, said: “There have been a few notable areas within the savings market to see positive uplifts, which may please consumers who want flexibility with their cash or those who are only prepared to lock their money away over the shorter-term.
“Easy access accounts, notice accounts and one-year fixed bonds have improved, thanks to a combination of the Bank of England base rate rises and provider competition.
“Those savers comparing their existing accounts may be wise to switch, as they could earn more interest in the process.
“A similar picture can be seen across Isas, which is good news for those who have not yet taken advantage of their Isa allowance.”
