The new breed of Challenger Banks are starting to make their mark and are offering traditional high street savers the opportunity to easily double, or in some cases treble their interest rewards, simply by ditching the big banks.
Loyal fixed rate savers with high street banks no longer have a reason to stay put – Challenger Banks are paying far more interest and savings balances are protected.
A quick look at the rates below shows just how poor the big banks are when it comes to fixed rate savings deals.
The new Challenger Banks listed below are all FCA regulated and deposits are covered by the Financial Services Compensation Scheme (FSCS) – up to £85,000 per individual per institution – exactly the same protection as you’ll get with a traditional high street bank.
A few minutes opening a new account will pay big dividends – for example a £15,000 1 year fixed rate bond with HSBC (0.65%) will see you earn just £97.50 yet with Tandem Bank (2.05%) you’ll pick up £307.50 over the same 12 month period – so what are you waiting for? – same FSCS protection yet you more than treble your income – it’s a no brainier.
- 1 Year – Tandem Bank 2.05%
- 1 Year – OakNorth Bank 2.02%
- 1 Year – Ford Money 2.00%
- 1 Year Paragon Bank 1.92%
- 18 months – Charter Savings Bank 2.11%
- 18 months – Masthaven Bank 2.05%
- 2 Years – Charter Savings Bank 2.30%
HIGH STREET PROVIDERS
- 1 Year HSBC – 0.65%
- 1 Year – Barclays 0.70%
- 1 Year – Nationwide Building Society 0.80%
- 1 Year – NatWest 1.00% (up to £50,000)
- 2 Years – Lloyds Bank 0.65%
- 2 Years – Santander 0.80% (123 world customers)