It is one of several banking products highlighted by an expert
A Nationwide deal that pays customers as much as £500 has been selected by a money expert as worth a look. It was one of several highlighted in the latest Moneyfactscompare.co.uk Pick of the Week on Friday.
Each week, the financial experts select what they deem to be the best of the latest products or rate changes to hit the consumer finance market. It covers savings, mortgages and everyday bank accounts.
Looking first at savings, the Union Bank of India One-Year Fixed Rate Deposit was chosen.
Top savings deals
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “Union Bank of India (UK) Ltd has increased the rates on a selection of its Fixed Rate Deposits this week. The one-year option fares best and now pays a market-leading 5.12%. If savers deposited the minimum £1,000 into the account, this rate would give them around £51 in interest over the course of a year.
“However, as is the case with many fixed-rate bonds, earlier access is not permitted, so savers should ensure they’re willing to lock away their cash for the full term and have some sitting in a separate flexible account for backup. The initial investment should also be carefully considered as further additions are not permitted.
“Adding to its appeal, loyal Fixed Rate Deposit customers could benefit from a small 0.10% bonus if they choose to reinvest into another bond at maturity, which may be a plus for some. Overall, the account receives an Excellent Moneyfacts product rating.”
Starling Bank’s Easy Saver was also marked out by Caitlyn, who said: “Customers looking to switch current account providers and maximise their easy access savings at the same time may be pleased to see that Starling Bank has boosted the rate on its Easy Saver to 5% AER on balances up to £25,000, which includes a 2.50% bonus subject to conditions. This account pays a market-leading rate when compared to its peers and can be opened with as little as £1, which may make it an ideal option for those starting their savings journey.
“Adding to its appeal, savers can make unlimited penalty-free withdrawals, meaning this may be a good home to keep emergency savings. However, to open the account, customers first need to open or have a Starling Personal account and to receive the full 5% AER rate, they must open the Easy Saver within 30 days of opening their new current account. Overall, the account receives an Excellent Moneyfacts product rating.”
Nationwide deals pays customers ‘up to £500’
Turning to mortgages, Nationwide Building Society’s two-year variable tracker rate mortgage, 80% loan-to-value, was picked.
Caitlyn said: “Nationwide Building Society is among a handful of lenders to increase rates across most of its range this week. Selected tracker deals have seen increases by up to 0.09%, but one deal to see a slightly smaller rise is the two-year 80% loan-to-value option which is now priced at 4.22%.
“As fixed rates continue to climb, tracker deals may become a more appealing option for borrowers looking to save on costs as they currently offer much lower initial rates. However, if base rate rises, borrowers’ monthly repayments may also rise in response. While there is a reasonable £999 fee attached, this is offset by its free valuation incentive and customers with qualifying properties could also receive up to £500 in ‘Green Rewards’ cashback. Despite the rise, this deal remains a competitive option and it maintains its position as a Best Buy, earning an Excellent Moneyfacts product rating.”
‘Excellent’ bank account
Finally, the Barclays Bank Account was picked out as a good deal.
Caitlyn said: “The latest update from Barclays Bank sees a new switching offer launched on its Bank Account. Consumers could now receive up to £300 for switching using the Current Account Switch Service (CASS) and meeting certain conditions, such as depositing at least £2,000. Alongside the attractive cashback offer, customers can also sign up for Blue Rewards, which gives them access to exclusive members-only savings accounts and the opportunity to earn cashback with Barclays Cashback partners.
“Further adding to its appeal, there is a £15 interest-free buffer on arranged overdrafts. Before opening an account, it’s important that consumers can meet any restrictions and that they can make full use of any additional perks to avoid overpaying. Overall, the account earns an Excellent Moneyfacts product rating.”
