Traditional V's New Banks: How Savings Accounts Fare
CHESTER, England, November 13, 2012 /PRNewswire/ --
- New kids on the savings block can offer more competitive deals
Analysis from MoneySupermarket has revealed that a host of new banking entrants can currently offer consumers a better return on a range of savings products, more so than deals offered by the traditional high street banks.
Easy Access ISAs
Marks & Spencer Bank is currently offering a rate of 3.00 per cent on its Easy Access ISA*, while The AA offers a rate of 2.70 per cent AER on its Postal Access ISA however, there are minimum deposits of £100 and £500 respectively on these accounts. By comparison, the best offering from one of the traditional high street banks is 2.64 per cent with Barclays Loyalty Reward ISA which also includes a bonus of 0.60 per cent for 12 months, and is only available to existing customers.
Fixed Rate Bonds
When it comes to Fixed Rate Bonds there are also some interesting deals around that go beyond just the traditional high street offers. Shawbrook's Fixed Rate Bond account tops the table for one year bonds with an AER of 3.00 per cent although there is a minimum deposit of £5,000. Bank of Baroda offers a rate of 2.95 per cent, and this account requires a minimum deposit of just £500. However, even Tesco Bank offers a better interest rate than the main high street banks, at 2.75 per cent and with a minimum deposit requirement of £2,000. The best one-year offerings by RBS and NatWest both pay 2.30 per cent AER with a minimum deposit of £2,000, whilst Santander insists on just £500 for its bond paying 2.30 per cent.
Easy Access Savings
Despite significant falls in interest rates, it is the new players who continue to offer rates ahead of the high street banks. Tesco Bank's Internet Saver account offers a rate of 2.40 per cent, but this does include a bonus rate of 1.15 per cent over 12 months. The best deal offered by one of the high street banks is Halifax's online saver paying 2.05 per cent, although this account doesn't include any bonus rate.
Kevin Mountford, head of banking at MoneySupermarket commented: "We've seen a rise in new competition on the high street, for example with the supermarkets and new entrants such as Metro Bank appearing, which has created more competition and choice for consumers. The newer entrants are offering some good accounts at the moment with interest rates that are currently edging ahead of the more traditional high street banks, meaning savers can get a better return on their money. However, some have a larger deposit requirement so it's important savers check all options first. It is also worth remembering that the Financial Services Compensation Scheme (FSCS) protection levels for new entrants is the same £85,000 that you get from the main high street banks.
"Our analysis underlines the importance of not necessarily accepting the deal being offered by your bank. Shopping around for a home from your savings can help you maximise the returns on offer, especially when rates have been so volatile and every penny counts. However, it is also important to keep an eye on the rate being paid on your account as although you may be offered good rates initially, they will drop over time, no matter which provider your savings are with."
Main Banks
Fixed Rate Bonds - based on GBP25,000
Minimum
Provider Term Deposit AER
Royal Bank of
Scotland
Fixed Rate Bond
Internet Only
Addition 1 Year GBP2,000 2.30%
NatWest
Fixed Rate Bond
Internet Only
Addition 1 Year GBP2,000 2.30%
Santander
Fixed Rate Bond 1 Year GBP500 2.30%
Halifax
Fixed Saver 1 Year GBP500 2.25%
Lloyds TSB
Term Deposit 1 Year GBP2,000 2.00%
Barclays
Fixed Rate
Savings Bond 1 Year GBP500 2.00%
HSBC
Fixed Rate
Saver 1 Year GBP2,000 1.80%
Best Buys
Fixed Rate Bonds - based on GBP25,000
Minimum
Provider Term Deposit AER
Shawbrook
Fixed Rate Bond
Issue 3 1 Year GBP5,000 3.00%
Bank of Baroda
MAX Fixed Rate
Bond 1 Year GBP500 2.95%
UBL
Fixed Term
Deposit 1 Year GBP5,000 2.75%
Tesco Bank
Fixed Rate
Saver 1 Year GBP2,000 2.75%
Metro Bank
Fixed Term
Savings 1 Year GBP500 2.50%
Easy Access ISAs - based on GBP5,640
Minimum
Provider Deposit AER Transfer In
Barclays 2.64%
Loyalty Reward (includes a
ISA (existing 0.60% bonus
Barclays for 12
customers only) GBP1 months) No
2.35%
(includes a
Halifax 2.10% bonus
ISA Saver for 12
Online GBP1 months) Yes
2.00%
(includes a
1.00% bonus
Lloyds TSB for 12
Cash ISA Saver GBP1 months) Yes
NatWest
e-ISA GBP1 2.00% Yes
HSBC
Cash e-ISA
(existing HSBC
customers only) GBP1 1.75% Yes
Royal Bank of
Scotland
Instant Access
Cash ISA GBP1 0.55% Yes
Santander
Easy ISA GBP1 0.10% Yes
Easy Access ISAs - based on GBP5,640
Provider Minimum Deposit AER Transfer In
Marks &
Spencer
Advantage Cash
ISA GBP100 3.00% Yes
2.70%
(includes a
The AA 2.20% bonus
Postal Access for 12
ISA (Issue 4) GBP500 months) Yes
2.50%
(includes a
Tesco Bank 0.50% bonus
Instant Access for 12
Cash ISA GBP1 months) Yes
Virgin Money
Easy Access
Cash eISA
Issue 2 GBP1 2.40% Yes
Metro Bank
Instant Access
Cash ISA GBP1 2.35% Yes
Easy Access Savings
Based on GBP1,000
Provider Min Invest AER Bonus
Halifax
Onilne Saver GBP1 2.05% N/A
1.00%
Santander for 12
eSaver (Issue 9) GBP1 1.50% months
0.75%
Barclays for 12
e-Savings Reward GBP1 1.26% months
1.10%
Lloyds TSB for 12
Easy Saver GBP1 1.20% months
NatWest
e-Savings
(existing NatWest
customers only) GBP1 1.00% N/A
Royal Bank of
Scotland
Direct Saver GBP1 1.00% N/A
HSBC
Online Bonus Saver GBP1 0.75% N/A
Sourced by http://www.moneysupermarket.com 13.11.2012
Easy Access Savings
Based on GBP1,000
Provider Min Invest AER Bonus
Tesco Bank 1.15% for
Internet Saver GBP1 2.40% 12 months
Marks & Spencer
M&S Everyday 1.00% for
Savings GBP1 2.35% 12 months
Virgin Money
Easy Access
eSaver Issue 4 GBP1 2.20% N/A
GE Captial Direct
Bonus Saver Issue 0.70% for
5 GBP500 2.20% 12 months
Sainsbury's Bank
Extra Saver GBP1 1.80% N/A
MoneySupermarket.com compares (at 30th Oct 2012)
- 129 car insurance brands and 100 home insurance brands
- 10 broadband providers and 18 energy providers
- 30 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 29 credit card providers
- 66 savings providers and 37 current account providers.
- Over 950,000 mobile phone deals
Our customers
We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.
Our providers
By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.
Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.
Our customer commitment
- We make it easy to find the brands you expect to see
- We strive to ensure a product cannot be found cheaper by going direct
- We let you remain in control of your personal data
- We are independent and impartial
- We make it easy to switch and save
- We strive to always show the most competitive product available
Contact: Paul Lawler, PR Manager, Tel: +44(0)1244-370-317, Email: [email protected]
SOURCE MoneySupermarket.com
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