Leeds Building Society has increased the interest rate on its easy access savings account, earning an “excellent” Moneyfactscompare rating.
Now paying a rate of 5.1 percent, the mutual’s Limited Issue Online Access Account (Issue 53) has taken a “prominent” position in its sector.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, Leeds Building Society has increased the rate on its Limited Issue Online Access Account. Now paying 5.1 percent, the account takes a prominent position within its respective sector.
“Savers may also be glad to hear that withdrawals are permitted, and further additions can be made for 30 days from the account opening.
“However, once this account matures on February 2, 2025, it will revert to an instant access maturity account, which investors may wish to note. Overall, the deal earns an Excellent Moneyfacts product rating.”
Savers can launch the account online with a minimum deposit of £1,000 and up to £1million can be invested overall.
Unlimited withdrawals can be made without notice or loss of interest, as long as the minimum operating balance of £1,000 is maintained. If the balance falls below £1,000, the interest rate will drop to 0.05 percent.
But while Leeds Building Society may be offering a more competitive deal, it isn’t currently topping the market. Offfering the highest interest rate is Metro Bank’s Instant Access Savings Account with an Annual Equivalent Rate (AER) 5.22 percent.
At least £500 must be deposited within 28 days to earn the limited edition rate and interest is paid monthly. Access is allowed at any time in a branch, online, or by phone.
Ulster Bank’s Loyalty Saver falls just behind with an 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.
For savers with a smaller deposit, Cahoot’s Simple Saver (Issue Two) is offering an AER of 5.12 percent.
Cahoot, which is a division of Santander, offers savers the deal from a minimum deposit of just £1. Interest is calculated daily and can be paid annually or monthly and withdrawals can be made at any time by transfer to another account.
Following the Bank of England’s recent announcement that the Base Rate will be held at 5.25 percent for the third time in a row, Alice Haine, personal finance analyst at investment platform Bestinvest, “now is the time to act” if savers don’t want to miss out on the top rates.
She said: “The average easy access savings rate [has risen] to 3.18 percent from 0.2 percent in December 2021, with the best deals still topping the five percent mark.
“While fixed-rate deals of six percent plus became a feature in the summer months, these offers have already disappeared and with rate cuts expected next year, savings rates are likely to ease further from here.
“Savers with money sitting idle in accounts offering dismal returns should nab a top fixed-rate deal while they still can.”
