Close Brothers Savings has increased the interest rate on its easy access account to 5.1 percent, earning an “excellent” Moneyfacts rating.
The account is aimed at people with larger deposits as it requires a minimum of £10,000 to invest to open.
However, savers can expect to see sizeable returns. To give an example of the interest the savings pot can amass at its current rate, a £10,000 deposit is estimated to earn £510 over 12 months.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Close Brothers Savings has increased the rate on its Easy Access Account (Issue Two) this week and now pays a competitive return of 5.10 percent on minimum investments of £10,000.
“As is common in the easy access market, savers will have unlimited access to their funds and there are no restrictions on further additions, which may appeal to those who wish to maintain flexibility.”
Ms Eastell added: “This account can only be set up and managed online. The deal secures a prominent position in our top tables and earns an Excellent Moneyfacts product rating.”
Up to £2million can be invested in the account overall and savers must be aged 18 and over.
But while Close Brothers Savings is offering a more attractive deal, it isn’t quite topping the table for the easy access sector. Ulster Bank is currently offering an AER of 5.2 percent through its Loyalty Saver on deposits of over £5,000.
Deposits smaller than £5,000 will earn a lower AER of 2.25 percent. Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
For savers with a smaller deposit, Cahoot’s Simple Saver (Issue Two) is offering an AER of 5.12 percent.
Cahoot, a division of Santander, offers savers the deal from a minimum deposit of just £1.
Interest is calculated daily and can be paid annually or monthly and withdrawals can be made at any time by transfer to another account.
Despite record rates being on offer over the last 18 months, research from Shawbrook shows almost half (46 percent) say they haven’t switched or opened a new account in the last 12 months.
A quarter (24 percent ) of active savers who have never changed to a new savings account say they have an average interest rate of 2.2 percent on their main savings account. But taking the step of moving £10,000 from an account paying 2.2 percent to a leading easy access account paying five percent could add an extra £280 to a person’s savings.
Adam Thrower, head of savings at Shawbrook, said: “Holding onto that same old savings account is like leaving money on the table. Loyalty might be costing you big time and it might only take a few minutes to open a new savings account.
“Small differences in rates add up—don’t underestimate it, they pile up faster than you think.
“If you’re not tapping into your savings right away but might do soon, you can still earn decent returns with an Easy Access account, so, why not make some money in the next few months? Whatever’s holding you back, it’s time to act – those higher rates won’t last forever.”
