Three best buy savings deals launched by BLME, paying up to 3.75% interest

Savers can now secure up to 3.75 percent return on their money, after the Bank of London and the Middle East launched three best-buy accounts.

The bank headquartered in London offers a one-year fixed-rate bond that pays 3.4 percent, a five-year fixed-rate bond that pays 3.75%, and a 90-day notice account that pays 2 .52 percent pay.

All three savings deals are market-leading, with the two solutions at the top of our independent best fixed-rate buy list.

Eligible deposits held at BLME are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).

Savers who choose the best one-year deal can open an account with a minimum of $1,000. However, once opened, you are not allowed to withdraw or add funds early.

According to Moneyfacts, the interest on the average one-year fixed rate has been high for almost 10 years, with a normal interest rate of 2.29 percent.

This means that the 3.4 percent deal offers BLME savers a premium of 1.11 percentage points above average.

Someone who deposits £20,000 into BLME’s one-year deal can earn £680 in interest after one year.

For those who want to earn a respectable interest rate but aren’t prepared to lock their money in for a year or more, BLME’s canceling account can offer a compromise.

Savers can add money whenever they want. They can also withdraw multiple times, albeit no less than £1,000 at a time and with 90 days’ notice.

Someone who deposits £20,000 into BLME’s cancellation account could earn £504 after a year.

The average cancellation account in the market pays significantly less at 1.41 percent, according to Moneyfacts, while BLME’s deal pays 2.52 percent, significantly above the best easily accessible savings rates in our tables.

Even the second best offer with 90 days notice pays 2.2 percent.

What is BLME?

BLME is a Shariah complaints office established in 2006. The Bank is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

It was named best fixed income account provider in the Moneyfacts Awards four years in a row, between 2018 and 2021.

It was also named Best Savings Provider by Spaar Kampioen in 2021.

Instead of paying interest to depositors, BLME – as an Islamic bank – invests customers’ deposits in ethical, Sharia-compliant activities to generate profits.

Such rates of return yield a Shariah-compliant expected return rather than interest, as with standard accounts.

Best Buy: For savers looking to earn maximum interest on their savings, BLME’s new accounts could be an attractive option

Do you need to sign up for BLME’s rates?

If you’re looking for the best rate, this could be an easy decision.

The best one-year deal and cancellation accounts are both well ahead of the competition right now.

The fact that deposits up to £85,000 are protected by the UK Deposit Guarantee Scheme should give most savers the peace of mind of going with a provider they may not have heard of.

The previous prizes it has won as a savings provider should also offer savers comfort.

Applying seems easy enough. According to the BLME website, filling out the online form takes about 10 minutes.

However, in terms of customer service, it may be worth trying before signing up by contacting the bank.

For those wishing to request a callback from the Savings Team, the BLME website states: ‘The Savings Team operates remotely and is available Mon-Fri 9am-5pm.

“Due to the current high volume of requests, it may take up to two business days to contact you in the chosen timeslot.”

How to find the best savings rate

Savings rates have been in the doldrums for many years, but the situation was greatly exacerbated by the pandemic and the emergency base rate was cut to 0.1 percent.

But there are ways to make sure your money is at least in the best of the bunch at all times.

Checking top rates is essential, but it’s also possible to make life easier in general and manage your piggy banks in one place.

A number of savings platforms have been launched in recent years, offering savers the ability to switch as better deals become available and manage accounts from various banks and mortgage lenders.

They each work slightly differently and contain their own exclusives. Take a look at the offer for yourself:

The platforms below have been independently selected by the specialized journalists of This is Money. If you open an account with links marked with an asterisk, This is Money earns an affiliate commission. This should not affect our editorial independence.

> Raisin*

> Hargreaves Lansdown Active Savings*

> Flagstone

Or you can check out This is Money’s comprehensive best-buy savings charts, independently compiled by savings guru Sylvia Morris:

> Compare the best savings rates now