Are savings rates about to reach 6 (percent)? New one-year solution now pays 5.7% as the provider has a strong chance to top the best buy leaderboard
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The England batsman may be hoping to hit as many sixes as possible in the current Ashes cricket series – and pundits predict savers will soon be cheering 6 per cent savings rates.
Rates are rapidly approaching the 6 percent mark after a new best buy launched this afternoon that paid 5.7 percent, blowing the competition out of the water.
The agreement for one year* is available through the savings platform Raisin UK and is offered by Ahli United Bank.
It is protected by the Financial Services Compensation Scheme, meaning savings deposits are protected up to £85,000 per person.
Hit for six: Some pundits say 6% savings rate is inbound – pictured England cricket captain Ben Stokes in current Ashes series
Someone who puts £10,000 in the account will earn £570 in interest at the end of the 12-month period.
The deal overtakes SmartSave Bank’s 5.43 percent one-year fix, which previously held the top spot on This is Money’s best buy savings tables after a spate of launches last week.
Savers need £1,000 to open the account and can then deposit a maximum of £85,000.
Savings rates have risen rapidly in recent weeks, with banks battling for first place and attracting customers.
The Monetary Policy Committee (MPC) meets this Thursday and many expect to raise the base rate from 4.5 percent to 4.75 percent, or 5 percent.
Markets now expect the Bank of England to raise key interest rates to a minimum of 5.75% later this year.
Kevin Mountford, co-founder of Raisin UK, thinks it won’t be long before we see a 6 per cent flat rate deal given the current direction of travel.
“Today comes good news for savers,” says Mountford, “fixed-income bonds have seen record increases over the past four months, especially in a one-year timeframe.
This could lead to 6 percent of accounts finally making a return — last seen more than 14 years ago.
The Bank of England in June reported a further £6bn deposited in fixed-term bonds and record flows to Isas, a positive move as consumers move away from the old high street rates.
“Currently, savvy savers can now maximize returns above 5 percent in the short, medium and long term, thanks to increased competition against easily accessible accounts from “micro-fix” alternatives.
“The current one-year deal is 5.7 percent of Ahli United Bank – fully FSCS protected and available through Raisin UK.”
The new best buy is available through online savings platform Raisin UK.
What is Ahli United Bank?
Ahli United Bank (UK) was founded in 1966 and is headquartered in London.
It was originally established to meet the investment and banking needs of offshore investors and visitors from the Gulf.
Today, the range of UK banking services includes private banking, wealth management, residential financing, commercial property financing and first class banking services.
Deposits 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 these accounts, depositors must sign up online through the savings platform, Raisin UK.*
There is also a smartphone app from Raisin for those who prefer to manage their finances through their mobile phone.
Raisin operates as a savings marketplace. This allows savers to manage all their savings through one online account.
Users can open multiple savings accounts with numerous different banks as and when they need to, without the usual form filling and administration.