Savings provider ups interest rate to 4% after Bank of England move

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Couple stunned by potential savings

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Atom bank has increased the interest rates on its range of instant and fixed savings products, which includes a two-year fixed special offer at 4 percent. The rise follows the latest decision by the Bank of England to increase the base rate for the seventh time since December.

 

As well as this new offer, Atom’s Instant Saver rate is now fourth and its Fixed Saver range currently sits in the Top Five of the best buy table.

Mark Mullen, Chief Executive Officer at Atom, said: “With the cost-of-living crisis biting and as winter fast approaches, it’s disappointing, but not surprising, to see high street banks continue to offer savers rock bottom rates despite the recent rate hikes.

“This is not the case at Atom, as we continue to increase the rates across our savings range to offer customers a better deal, with exceptional service, because that’s what we came here to do. 

“Our vision is to change banking for good, for the better and for everyone.”

He continued: “This includes savers, who for too long have endured high street banks paying them as little as possible – more often than not, as close to zero as their computer systems will allow, while happily passing on base rate rises to their mortgage customers.

“Saving with Atom is easy and quick, and our award-winning savings range is available to everyone through our top rated app.

“We’re trusted with over £3.5bn of UK savers’ deposits, and our 4.7 Trustpilot rating shows the current high level of customer satisfaction.

“We’re here to grow and to challenge an outdated banking model; continuing to offer a better value for money is how we make that promise real to UK savers.”

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Atom Bank’s new savings rates:

  • Instant access saver: Increase from 1.50% to 1.90%
  • 6 month fixed saver: Increase from 2.00% to 2.50%
  • 1 year fixed saver: Increase from 3.20% to 3.45%
  • 2 year fixed saver: Increase from 3.70% to 4.00%
  • 3 year fixed saver: Increase from 3.40% to 3.70%
  • 5 year fixed saver: Increase from 3.40% to 3.70%
  • READ MORE: HSBC warns Britons of new tactic scammers are using to steal details

    Savers are being encouraged to make sure they are getting the best savings rates as interest rates rose again this week.

    Money saving expert founder Martin Lewis urged people to consider switching if they are getting less than two percent interest on their savings.

    Derek Sprawling, Savings Director at Paragon, said savers could get a ‘far greater return’ on their savings and encouraged them to switch if they are getting less than 3 percent interest.

    The latest Bank of England data reveals that over a fifth (21 percent) of balances in easy and instant access accounts pay no interest on a shocking £265.5billion, an increase of £20billion compared to a year ago. 

    He said: “It is not unknown to see two-year fixed savings account that may only offer around 1.60% AER from high street providers. 

    “These rates are though in marked contrast to challengers, which can often provide a far greater return for savers – with two-year fixed rates on savings of over 3 percent AER available today.

    “While it takes time to find the right products to fit an individual’s circumstances, the benefits of doing so are apparent – and when savers need to be making their money work to help pay for the essentials in the years ahead, and not just life’s little extras, I urge everyone in a position to do so.

    “This is not the most exciting thing on anyone’s to-do list – but one which you may end up regretting if you hold out for rates that are not likely to transpire.”

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