Aldermore Bank launches joint best-buy savings deal: savers can now earn 3.55% interest from their easy-to-access account
- Aldermore today raised the rate on its Double Access Account to 3.55%
- The account matches Chip’s direct access account at the top of the best-buy table
- One-fifth of all easily accessible deposits still receive zero interest
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Aldermore Bank today launched a best-buy savings account that pays out 3.55 percent, matching its savings and investment app, Chip’s, instant access deal*.
But savers should be careful, as the interest rate depends on how many times savers withdraw money in a year.
Aldermore’s duplicate access bill* limits savers to only two withdrawals per year.
Rate hike: Aldermore has raised the rate on its dual access account, with the rate now collectively leading the market for easy access accounts in the UK
Those who decide to stop more often will see the rate fall to a paltry 0.1 percent for the rest of the year.
Savers who like to play by the rules will see a deposit of £10,000 earn £355 in interest over the course of a year – if interest rates remain the same.
The Aldermore account must be opened and managed online. The minimum deposit required to open it is £1,000 and the maximum balance is £1m – although as with most savings accounts, money is only protected by the Financial Services Compensation Scheme up to £85,000 per person.
The account can be opened in a name or held jointly with someone else, meaning it’s possible to double the FSCS protection from £85,000 to £170,000.
Savers looking for an account without withdrawal restrictions can still get 3.55 percent with the savings app Chip.
Savers can deposit between £1 and £250,000 into Chip’s account. All funds deposited are held by ClearBank and are eligible for the Financial Services Compensation Scheme up to £85,000 per person.
Tandem Bank also offers a 3.5 per cent rate with unlimited withdrawals, no minimum deposit to open and the ability to save up to £250,000.
Both Chip and Tandem can be set up in minutes. Savers simply need to download the mobile app, create an account and get started.
Alternative options are Family Building Society, which pays 3.4 percent and GB Bank, which also pays 3.4 percent through the savings platform, Raisin UK*.
> View the best low-threshold savings rates here.
Should you switch to a better rate?
Whatever financial goals Britons have this year, keeping their extra cash in a highest paying, easily accessible savings account should be at the top of the list.
Opening a new savings account online often only takes a few minutes and can save someone hundreds or even thousands of dollars in extra interest.
A fifth of all easily accessible deposits still receive zero interest, even with the Bank of England’s base rate at 4.25 percent.
A whopping £256bn is held in easily accessible accounts that pay no interest at all, according to an analysis by Coventry Building Society.
According to Moneyfacts, the average low-threshold percentage is 2.01 percent. Anyone earning below needs to take action.
A balance of £10,000 that earns 1 per cent interest will yield £100 over the course of a year, while moving it to a best buy that pays 3.55 per cent will yield another £255.