It was one of several accounts picked out by an expert
A Tesco Bank savings account has been marked out as a top deal by a money expert this week. It was picked out by Moneyfactscompare.co.uk as one of its ‘Picks of the Week’.
The rundown showcases what it deems to be the best of the latest products or rate changes to hit the consumer finance market. When it came to savings, the Tesco Bank Fixed Rate Saver came out well.
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “Tesco Bank has increased the rates on a range of its Fixed Rate Savers, including the one-year option which takes a prominent position in the top 10 when compared to its peers. The account now pays an attractive 4.84% AER and savers have the choice between having interest paid on its anniversary or monthly, which may be an ideal option for those looking to boost their income.
“While the account guarantees an attractive rate for a year, like many fixed accounts earlier access is not permitted, so savers should be comfortable with committing to the full term and consider having a small savings pot elsewhere if they anticipate needing to access their savings. To open the account savers will need at least £2,000 but, adding to its appeal, further additions can be made for 30 days from the account opening. On assessment, the account receives an Excellent Moneyfacts product rating.”
When it came to ISAs, this week’s pick was the Chip Smart Cash ISA.
Caitlyn said: “This week, Chip has boosted the rate on its Chip Smart Cash ISA and now pays an attractive 4.60% AER. While this is a competitive headline rate, savers should note this includes a 0.85% AER bonus for the first 12 months, so it’s crucial they set a reminder to review the deal once it expires.
“Adding to its appeal, the account can be opened with as little as £1 and may be an ideal option for savers not looking to set aside huge amounts each month but still looking to take advantage of their tax-free savings. Access is permitted, giving savers the option to use this account as a home for their emergency funds but if they decide to close or transfer out of the account no interest is paid for that month, which should be considered.
“Investors looking to make the most of the account could choose to pay the £5.99 fee every 28 days for a ChipX subscription which gives them wider or exclusive access to some features. The deal secures an Excellent Moneyfacts product rating.”
The Birmingham Bank 95 Day Notice Account was also selected.
Caitlyn said: “Birmingham Bank has changed the issue number and increased the rate on its 95 Day Notice Account. The deal got a boost to 4.36%, which improves its position in the top 10 when compared to its peers. Savers will need £5,000 to open the account and it may be an ideal option for those saving for a specific goal who know exactly when they’ll need to access their cash.
“The account permits unlimited penalty-free withdrawals via a nominated account but, as the name suggests, savers are required to give notice. On assessment, this account earns an Excellent Moneyfacts product rating.”
Turning to everyday accounts, the Zopa Biscuit Current Account was chosen.
Caitlyn said: “The latest update from Zopa sees it reduce the credit interest on its Biscuit Current Account to 1.00%. Despite this, the account remains a competitive option in the top 10 when compared to its peers. While cashback on debit card purchases does not come as standard, eligible customers can opt into one additional account perk, including 3% cashback on monthly spending at restaurants, takeaways and bakeries, which is an enticing benefit for customers who eat out regularly.
“Among the other benefits to choose from is a boosted credit interest rate of 2.75% AER, which may be ideal for those who may keep a slightly larger account balance, and there is also the choice of 3% cashback on up to £150 of direct debits. However, it may be worth noting that the account currently does not offer any arranged overdraft, so it may not be the best option for customers expecting to dip into it. On assessment, this deal earns an Excellent Moneyfacts product rating.”
