Are savings rates about to be hit for 6 (per cent)? New one-year fix pays 5.7% as provider takes a big shot to go top of the best buy leaderboard
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England’s batsmen may be hoping to hit as many sixes as they can in the current Ashes cricket series – and experts predict savers will soon be cheering 6 per cent savings rates.
Rates are fast approaching that 6 per cent mark after a new best buy was launched this afternoon paying 5.7 per cent, blowing competition out of the water.
The one-year deal* is available via the savings platform Raisin UK, and is being offered by Ahli United Bank.
It is Financial Services Compensation Scheme protected, meaning saver deposits are protected up to £85,000 per person.
Hit for six: Some experts say 6% savings rates are inbound – pictured, England cricket captain Ben Stokes in the current Ashes series
Someone putting £10,000 in the account will earn £570 in interest by the end of the 12 month period.
From tomorrow morning, Close Brothers is launching a 5.55 per cent one-year fix, which will be the best deal available outside of a savings platform.
The deal will overtake, SmartSave Bank’s 5.52 per cent one-year fix, which previously held top spot on This is Money’s best buy savings tables after a flurry of launches last week.
Savers will need £1,000 to open the account and thereafter can deposit up to a maximum of £85,000.
Savings rates have been climbing at speed in recent weeks with banks battling each other in order to take top spot and attract customers.
The Monetary Policy Comittee (MPC) will meet this Thursday, with many expecting them to hike the base rate from 4.5 per cent to either 4.75 per cent or 5 per cent.
Markets now expect that the Bank of England will raise the base rate to at least 5.75 per cent later this year.
Kevin Mountford, co-founder of Raisin UK, believes it may not be long before we see a 6 per cent fixed rate deal given the current direction of travel.
‘Today comes as great news for savers,’ says Mountford, ‘fixed-rate bonds have seen record increases in the past four months, especially in the one-year space.
‘This could lead to 6 per cent accounts finally making a return – last seen over 14 years ago.
‘The Bank of England reported an additional £6billion deposited in fixed-term bonds and record-breaking flows into Isas in June, a positive movement as consumers pull away from the stale rates offered by the high street.
‘Currently, savvy savers can now maximise their returns above 5 per cent in the short, mid, and long-term space, thanks to increased competition against easy access accounts from “micro-fix” alternatives.
‘The current one-year deal to beat is 5.7 per cent from Ahli United Bank – fully FSCS-protected and available via Raisin UK.’
The new best buy is available via the online savings platform, Raisin UK.
What is Ahli United Bank?
Ahli United Bank (UK) was established in 1966 and is headquartered in London.
It was originally set up to meet the investment and banking needs of offshore investors and visitors from the Gulf.
Today, its range of British banking services include private banking, wealth management, residential property finance, commercial property finance and premium banking services.
Deposits made into savings accounts offered by Ahli United Bank (UK) PLC through Raisin UK are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person.
How can you apply?
To open one of this account, savers must apply online through the savings platform, Raisin UK.*
There is also a Raisin smartphone app for those who prefer to manage their finances through their mobile phone.
Raisin operates as a savings marketplace. It allows savers to manage all their savings through a single online account.
Users can open multiple savings accounts with numerous different banks as and when they require without the usual form filling and admin.
