Atom Bank cuts top savings rate - is it still the best deal?
Atom Bank has reduced the rate on its market leading one-year fixed savings bond to 1.8%, so is it still the best place to save?
The bank, which requires people to open and manage accounts using a smartphone app, reduced the rate from its previous 2% level at midnight on Thursday 9 March. This means any new customers from today will receive the lower 1.8% rate.
The rate had only risen to 2% from 1.5% on 24 February .
However, Atom’s market leading two, three and five-year savings accounts are unaffected by the move. They offer interest rates of 2.1%, 2.2% and 2.4% respectively.
A spokesperson for Atom Bank says: “We continue to offer the best savings rates of all providers across all of our products, and the new rate for the One Year Fixed Saver (1.8%) remains market-leading.
“Atom is building products that offer the best rates with the best possible service and experience, as well as the best returns.”
Savers will be disappointed to see Atom Bank’s 2% product withdrawn, but this rate was much higher than any other providers were offering. Despite the rate cut, Atom remains the best bet for savers who only want to lock-in for a year.
The 1.8% rate is well above the next best accounts; OakNorth Bank’s Fixed Term Deposit with a rate of 1.62% and the Aldermore One Year Fixed Rate Account at 1.5%.
Here are Moneywise’s top three one-year savings accounts:
|Provider||Account name||Interest rate|
|Atom Bank||One Year Fixed Saver||1.80%|
|OakNorth Bank||Fixed Term Deposit||1.62%|
|Aldermore||One Year Fixed Rate Account||1.50%|
Can you do better elsewhere? For easy access savers, the best account only pays a measly 1.1%. This has resulted in many consumers turning to current accounts in a bid to get a higher return on their cash. These could be a better bet for your savings – although there are more restrictions.
The Nationwide FlexDirect account, for example, pays the highest rate of interest at 5% on balances up to £2,500 for the first year, but this drops to 1% thereafter. Read Moneywise’s guide to the top current accounts and find the account that’s best for you.