Barclays savings account offers 5.12% on £5,000 savings – earn £250 interest | Personal Finance | Finance
Savers can put away as much money as they can afford but it’s worth noting the interest rate drops to 0.15 percent for balances over the £5,000 limit. The Rainy Day Saver account Savers can be opened with just a £1 deposit.
David Kelly, Head of Savings at Barclays, said: “Customers are looking for ways to build their savings, and the Barclays Rainy Day Saver helps them to create an instant access emergency fund with a headline rate for balances up to £5,000.
“The Barclays Blue Rewards scheme is designed to help people make their money work harder with access to exclusive savings products.
“It sits alongside Barclays’ highly competitive fixed rate bond and ISA options, which are available to all, helping customers to save more.”
The account can be managed using the app, online banking, over the phone or by visiting a Barclays branch.
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Meanwhile, Hampshire Trust Bank’s Two Year Fixed account offers an attractive savings rate of 4.32 percent, which has been named a “top pick” by the team at Money Saving Expert.
To open an account, customers only need £1 and they can invest as much as £250,000.
Savers are being encouraged to switch if they are getting less than three percent interest.
Derek Sprawling, savings director at Paragon Bank said: “It is not unknown to see two-year fixed savings account that may only offer around 1.60 percent AER from high street providers.”
He continued: “These rates are in marked contrast to challengers, which can often provide a far greater return for savers – with two-year fixed rates on savings of over three percent AER available today.
“While it takes time to find the right products to fit an individual’s circumstances, the benefits of doing so are apparent – and when savers need to be making their money work to help pay for the essentials in the years ahead, and not just life’s little extras, I urge everyone in a position to do so.
Myron Jobson, senior personal finance analyst at Interactive Investor agreed: “Rising prices could still erode the purchasing power of cash savings over time.
“This makes it vital savers pick the most competitive account.”
