Chetwood Bank has raised the interest on its easy access savings account to 4.61%, landing it with an “excellent” rating from Moneyfactscompare.
There is no minimum deposit to get started and interest is paid monthly.
Easy access accounts are typically more flexible, allowing savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
In the current high cost-of-living environment, a survey by Hodge found that more than half of respondents are having to dip into their savings for everyday expenses, making easy access accounts especially popular at present.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Chetwood Bank has increased the rate on its Easy Access account, which secures a competitive position when compared to its peers.
“The account pays 4.61% gross / 4.71% AER monthly. It can be opened with no minimum deposit, making it accessible to many savers.”
However, she pointed out: “It is worth noting that only one withdrawal is permitted per day and funds become available the following working day so some careful planning may be needed.
“On assessment, this account receives an Excellent Moneyfacts product rating.”
While Chetwood Bank may be offering a more competitive deal, it isn’t currently taking the top spot.
Atom Bank’s Instant Saver Reward has an Annual Equivalent Rate (AER) of 4.85%. There is also no minimum deposit required and interest is paid monthly.
Similar to Chetwood Bank, there are some restrictions around withdrawals. A lower interest rate will be paid during the month a withdrawal is made.
For those looking for more flexibility with withdrawals as well as a low opening deposit, Secure Trust Bank offers the next best rate with an AER of 4.65%.
People need just £1 to get started and interest is paid monthly. There are also no restrictions on withdrawals, meaning savers can dip into their accounts when they need to.
Britons are being urged to act quickly to secure the top interest rates on their savings as deals are falling. A recent analsys by Moneyfactscompare showed the average easy access rate fell month-on-month to 3.03%.
Rachel Springall, finance expert at Moneyfacts, said: “Easy access savings accounts continue to be the evident casualty of interest rate cuts by the Bank of England, and the average rate now stands at its lowest point since September 2023, when it was below 3% (2.95%).
“It is worth pointing out that there will be savers earning even less than this and, worryingly, some savers will not be earning a single penny on their cash.”
According to the Bank of England, £252billion is sitting in UK current or savings accounts earning no interest at all.
Ms Springall added: “It will be up to consumers to make time to move their hard-earned cash into an account which not just pays interest, but also provides a real return against the eroding impact of inflation, which is expected to stay above 2% for some time yet.”
