Savings accounts: Good news for savers as bank ups interest rates | Personal Finance | Finance

The new year has seen many banks beginning to up the interest rates on their savings accounts, for a variety of reasons. Account benefits are also on the rise as savers are encouraged to take hold of deals while they can.

Finance website Moneyfacts.co.uk shared their top picks of rate changes to hit the consumer finance market that received the Moneyfacts Excellent rating this week.

Atom Bank

Atom Bank announced rate increases of up to 0.55 percent rate on their selection of fixed savers accounts. 

After these increases are implemented, the top interest rate will be their two-year product with 1.60 percent   

The two-year product will be increased by 0.23 percent and secures its competitive position alongside alternative bonds offered with similar terms. 

Resident finance expert at Moneyfacts, Eleanor Williams, shared her insight on this product: “There is also a monthly interest option on offer, which could further tempt those looking to supplement their monthly income. 

“As is common in the fixed bond market, early access to funds is not permitted, however, further additions can also be made for one week from account opening.”

The minimum opening amount of this account is £50 with a maximum of £100,000 and no access is permitted during the two year term. 

DONT MISS: 

The interest rate for the ISA was increased by 0.05 percent and offers more flexibility than normal fixed or notice accounts. 

Additionally, the ISA aspect of this account could be enough to convince many savers to utilise this opportunity. 

The ISA provides all interest tax-free although savers should be wary not to exceed the annual ISA threshold which is calculated across all of their ISA accounts. 

However, the biggest catch for this account is the minimum investment amount of £10,000.