Atom Bank is to cut the rate of interest on its four market-leading savings accounts, with savers urged to open accounts before the rates drop.
The bank, which requires people to open and manage accounts using a smartphone app, will reduce each of its savings rates at midnight tonight.
That means savers have until 11.59pm tonight to take advantage of its current rates.
Its one-year fix will drop from 1.8% to 1.6% while the two-year fix will fall from 2.1% to 1.7%.
For those looking for a three-year savings account, this rate will drop from 2.2% to 1.9% while the rate on its five-year bond will fall from 2.4% to 2.2%.
A spokesperson for Atom Bank says: “We continue to offer very competitive rates, with the three-year product offering market-leading returns, and our one, two and five year fixed savers remain within the top two of all currently available (as per figures of 15 March 2017).
“We’ve given UK savers a great deal over recent weeks and with strong support from the press, we’ve seen a high volume of new customers come and join us.
“Because we’ve had lots of savings customers join us over the past few weeks, we’re now reducing our rates for a while to ensure we’re taking a balanced approach to managing our business.”
Is Atom Bank still the best deal?
The savings market is moving fast at the moment but there are still some good deals out there. Here are the top fixed rate savings accounts, once the Atom Bank rate cuts take effect:
|Provider||Account name||Fixed period||Interest rate|
|United Trust Bank||One Year Personal Deposit Bond||One year||1.65%|
|United Trust Bank||Two Year Personal Deposit Bond||Two year||1.8%|
|Atom Bank||Three Year Fixed Saver||Three year||1.9% (From 16 March 2017)|
|Secure Trust Bank||Five Year Fixed Rate Bond||Five year||2.25%|
You can get a more in-depth view of the savings market by reading the Moneywise guide to the best savings rates this week.
For easy access savers, the best account from RCI Bank 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.