Tandem Bank presents ‘big’ 5% rate of interest on quick access financial savings account
Tandem Bank is providing savers a market-leading interest rate of 5 p.c to these needing instantaneous entry to their money.
Launching in 2014 as one of many UK’s unique digital challenger banks, Tandem Bank presents quite a few merchandise from mortgages and residential loans to motor finance and savings accounts.
Savers have the selection of instantaneous entry or fastened charge savers, every boasting aggressive rates of interest in comparison with the broader financial savings market.
Describing Tandem’s new charge as “huge” in his most up-to-date Money Saving Expert e-newsletter, Martin Lewis mentioned: “App-only Tandem pays five percent with unlimited withdrawals and no minimum deposit.”
People should be UK tax residents aged 18 or over to open an account, and as much as £250,000 could be invested total.
The 5 p.c rate of interest features a 0.35 p.c 12-month bonus. To get it, Mr Lewis wrote: “Click the ‘top-up’ button in the app once you’ve opened an account.”
Interest is calculated every day and paid month-to-month. However, charges are variable, which implies the financial institution can both improve or lower the speed on provide at its personal discretion – however savers will probably be knowledgeable upfront.
While Tandem Bank is providing a very enticing deal, the competitors isn’t too far behind. Secure Trust Bank is providing a 4.65 p.c rate of interest on its Access Account (Issue 9), and savers can get began with £1,000.
People can open an account on-line and as much as £85,000 could be invested total. Interest is calculated every day and utilized on the finish of every month, and savers could make limitless withdrawals with out discover.
Shawbrook Bank follows shut behind with its Easy Access (Issue 36), providing an AER of 4.63 p.c.
The account could be opened with a minimal deposit of £1,000 and curiosity could be paid both month-to-month or yearly.
People can solely apply for the account on-line and just like Secure Trust Bank, as much as £85,000 could be invested total in a solely-held account.
There aren’t any limitations on the variety of withdrawals and no discover of withdrawal is required, nevertheless, the minimal quantity an individual can take out at one time is £500.
Commenting on the variety of challenger banks dominating the highest spots in the marketplace, Adam Thrower, head of financial savings at Shawbrook mentioned: “Many of the leading savings providers do not have a high street presence and so, by limiting yourself to a ‘big name’ or only a bank with high street branches, you’re limiting your potential earnings.
“If the bank you’re interested in is protected by the FSCS, and is offering a rate that is much better than your current rate, then make the switch.”