Atom Bank has leapt to the top of the savings best buy tables with the launch of three new market-leading accounts.
Customers can earn 1.95% for locking their cash away for a year with Atom Bank, while its two- and three-year fixes pay 2.05% and 2.25% respectively.
The accounts must be opened and managed using Atom Bank’s app, which is available on both Android and Apple devices. No other access is available.
Accounts must be opened with a balance of £50 or more, and customers can have interest paid monthly or on an annual basis.
The 1.95% one-year fix is well ahead of the next best product, Paragon’s One Year Fixed Rate account paying 1.86%.
In the two- and three-year market, Axis Bank UK and Vanquis Bank offer the same headline rate as Atom Bank. However, both require a much larger £1,000 deposit to open an account – putting Atom Bank ahead of them in Moneywise’s best buy tables.
See the table below for a comparison of the best rates.
|Atom Bank product||Next best product|
|One Year Fixed Saver 1.95%||Paragon One Year Fixed Rate 1.86%|
|Two Year Fixed Saver 2.05%||Axis Bank UK Two Year Fixed Deposit 2.05%|
|Three Year Fixed Saver 2.25%||Vanquis Bank Three Year Savings Bond 2.25%|
Atom Bank is based in the UK and savers have the full Financial Services Compensation Scheme protection of £85,000 in the event of a bank failure.
How to make your savings beat inflation
However, despite these new deals being better than the rest of the market, none of them beat the current rate of inflation.
The Consumer Prices Index (CPI) rate of inflation was 3% in the year to September 2017, according to the Office for National Statistics’ latest data.
No available-to-all savings accounts currently pay a level of interest that beats inflation, although some regular savers and current accounts do.
Read the Moneywise guide to savings accounts that beat inflation to find out more.