Bank raises interest rate on ‘exclusive’ savings account offering 4.25% – ‘excellent’ | Personal Finance | Finance
Following the Bank of England’s base rate rise, a number of bank and building societies have increased the rates on their savings products. Britons are urged to look around to find the best deals available to them.
If the total balance of the account was £1,000 after 12 months, the balance after interest is paid would be £1,042.50.
Britons cannot make withdrawals during the fixed term. Hodge Bank will write to customers, before the end of their fixed term, to provide them with their options.
When people open an account, they have 10 working days to transfer any funds into that account.
If, after 10 days, no funds have been received or the funds held in the account do not meet the minimum balance, then the bank will close the account and return any money held in the account.
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Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said: “Hodge Bank has increased the rate paid on its 1 Year Fixed Rate Bond by 0.10 percent this week.
“Now paying a rate of 4.25 percent, this account takes a place in the top 10 when compared to other bonds with similar terms and may well tempt savers happy to secure their savings pot away for the short-term based on rate alone.
“As is common with many fixed accounts, earlier access to funds is not permitted, so savers need to be happy to secure their cash away for the term of the account, but there is a little flexibility for investors to make further additions for 10 days from account opening.
“Overall, this account receives an Excellent Moneyfacts product rating.”
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Rachel Springall, a finance expert at Moneyfacts.co.uk, outlined what the current saving account market looks like in light of this economic turmoil.
She explained: “Inflation continues to take its toll on savers’ cash, as not one standard savings account can beat it.
“However, savers should not be discouraged to compare and should switch deals if they can, as they could miss out on a better return if they become apathetic.
“Easy access accounts remain a firm favourite among savers, but it’s disappointing to see many of the biggest high street banks are paying very little to their loyal customers.
“Challenger banks and building societies are offering some of the best rates out there, so it is always worth considering the more unfamiliar brands.”
