Atom Bank launches new top 2.30% savings account – but you have to lock away your cash
SAVERS looking to make the most of their cash can now earn 2.30 per cent interest as Atom Bank launches a new top two-year fixed account.
The challenger bank has also rolled out a 2.03 per cent savings account fixed over one year, and even this one is market-leading among the traditional savings accounts.
Sharia accounts by Islamic Banks often beat the rates offered on standard fixed accounts, but they pay an "expected" rate so your bonus isn't guaranteed.
The accounts by Atom Bank beat the previous top one-year fixed account by Metro Bank that offers savers 2 per cent in interest, and a two-year fixed deal by Secure Trust Bank, which pays customers 2.27 per cent.
Even better, the only require a minimum deposit of £50 compared to £500 for Metro Bank and £1,000 for Secure Trust Bank.
Just keep in mind you can only open and manage the account using the bank's app, which is available both for and users.
You can also only make your deposits within the first week of opening the account, and after that you can't withdraw the cash for a year or two depending on which account you go for.
If you require access to your cash, an easy-access account will be a better option but they come with lower interest rates.
Currently, the best buy easy-access savings account pays 1.5 per cent at both Kent Reliance and Marcus.
Savers can also consider Cash Isas - check out our round-up of the accounts with the best rates.
How do you switch Isa provider?
IF you're in the market for a new, better paying Isa, there's one thing you shouldn't do.
Never withdraw money from your Isa account to put it into your new one - if you do it'll lose its tax free benefits.
Instead you need to follow the simple transfer process.
Make sure that the new account you want to use accepts transfers (not all do) and then fill in the Isa transfer form with the new provider.
It will arrange for your savings to be transferred over, with the process taking no more than 15 working days.
And remember, you can only have one "active" Cash Isa per tax year.
Rachel Springall, finance expert at comparison site Moneyfacts, said: "Climbing into the Best Buys this week are newly priced fixed rate bonds from Atom Bank, and with its two-year fixed bond in particular set a radical rate rise of 0.30 per cent, up from 2 per cent to 2.30 per cent.
"This deal now sits comfortably towards the top of the market and may be a preferred to alternative brands thanks to its low deposit requirement.
"Those savers who are only prepared to lock their money down for a year will also be delighted by Atom Bank’s one-year fixed bond.
"As we have seen in the past, Atom Bank may not sustain such a lucrative option for long, so any savers considering the deals may want to act fast."
Most read in money
Martin Lewis recently revealed how to earn 100 times more on your savings.
From the best budgeting apps to the simple things you can do to shave off a few pounds here and there, here are 50 ways to save money.
Thanks to new technology, you can now also earn £5 every time it rains.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected]