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.”

 

Moneywise verdict

Savers will be disappointed to see Atom Bank’s 2% product withdrawn, but this rate was much higher than any other providers were offering.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.