Newcastle secure best-buy savings deal after just TWO days in sweltering market…but Investec and Paragon top two more rates
- Newcastle’s Base Rate Tracker paid an industry-leading 4.3% for ease of access
- However, due to high demand, it was taken off the market last week
- Since then, two new accounts have been launched that pay almost the same amount
Newcastle Building Society has withdrawn its best buy easy-access rate from sale after just over two days on the market as competition between savings providers continues to intensify.
Newcastle’s Base Rate Tracker account launched on June 28 and paid 4.3 percent interest.
While that rate could change, the mortgage bank guaranteed it would fall no less than 0.7 percentage point below the Bank of England’s base rate until December 31, 2025.
Savers who didn’t act quickly have now missed their chance to apply as the bill was drawn on June 30 – but two larger providers, Investec and Paragon Bank, have now stepped in with new rates nearly as good.
While the best buy may have been made, a number of other banks and building societies have raised their rates to fill the gap
Investec has increased the interest on its Online Flexi Saver account from 3.82 percent to 4.2 percent.
The account is an instant access deal that allows for unlimited deposits and withdrawals. It must be accessed and managed online.
Savers need a minimum balance of £5,000 to start and can then deposit up to £250,000. However, savers should note that deposits are only protected up to £85,000 per person under the UK Deposit Guarantee Scheme.
> View the best low-threshold savings rates
Meanwhile, Paragon Bank raised the rate on its triple access account from 3.91 percent to 4.25 percent.
Paragon’s deal allows savers just three withdrawals per 12 months without affecting their interest rate.
With four admissions or more, the rate drops to 1.5 percent.
How long will those rates remain in effect?
James Blower, founder of the Savings Guru website, believes these two deals should last a little longer than Newcastle’s account.
He said: ‘Investec is the 10th largest bank in the UK and Paragon has £12bn in savings so could sustain a period at the top – although I expect they will be there for a week or two at the most.’
A number of other providers have also raised rates to similar levels in recent days.
RCI Bank increased its easily accessible deal from 3.85 percent to 4.2 percent. It also offers a 14-day cancellation policy and pays 4.3 percent.
Monument Bank is now paying 4.2 per cent on its easily accessible deal, though savers will need £25,000 to get started and also be prepared to open and manage their account through the mobile app.
Leeds Building Society also now pays 4.2 per cent on its Limited Issue Online Access Account.
Leeds is the UK’s fifth largest mortgage bank, generating £14.5 billion in savings.
The account offers unlimited withdrawals and has a fixed end date of September 1, 2024, when interest will be paid.
But if the balance falls below £1,000, the rate drops to 0.05 per cent.