Close Brothers Savings has raised the interest rate on its easy access savings account to 5.12 percent, earning an “excellent” Moneyfacts rating.
The account is aimed at savers with more sizeable sums to invest as it requires a minimum deposit of £10,000 to open.
However, savers can expect to see larger returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £512 over the course of a year.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, Close Brothers Savings has increased the rate on its Easy Access Account (Issue Two) and now pays a competitive return of 5.12 percent on £10,000 investments.
“Savers will be happy to see they have unlimited access to their funds and there are no restrictions on further additions, which may entice those who wish to maintain flexibility.”
However, Ms Eastell noted: “This account can only be set up and managed online.”
She added: “The deal secures a prominent position in our top tables and earns an Excellent Moneyfacts product rating.”
While Close Brothers Savings is offering a more competitive deal, just one account allowing unlimited access beats it.
Topping the leaderboard of easy access savings accounts offering the highest interest rate is Ulster Bank’s Loyalty Saver with an Annual Equivalent Rate (AER) of 5.2 percent on deposits of over £5,000.
Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent. Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
Commenting on the market, Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Those savers who prefer to have flexibility with their savings pots will find variable rates on the top easy access, notice accounts and ISA equivalents have been resilient.
“Indeed, it has been six months since the market last felt a base rate rise, and many providers have likely caught up with these rises by now, so any future improvements to the top rates will be down to competition.”
While there are many savings accounts for Britons to consider, Ms Springall noted that it remains the case that the convenience of putting cash in an easy access account with the biggest high street banks “comes at a cost”.
This is because accounts with these lenders are paying “much less” than the top easy access accounts which pay around five percent.
Ms Springall added: “Inflation is predicted to come down to around 2.7 percent by Q4 2024 and, based on today’s top rates, savers would be able to make a return on their cash on most savings accounts on the market should interest rates hover around current levels.
“Savers who have not reviewed their existing rate would be wise to do, as well as taking time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.”
