Atom Bank has launched two new savings accounts with three- and six-month fixed rates for savers. But how do they compare to other options in the savings market?
The app-only bank will now offer 1.3% for a three-month fixed saver and 1.8% for a six-month fixed saver. The bank says the accounts can be opened with as little as £50 initially.
Lisa Wood, Atom’s chief marketing officer, says: “Low interest rates and rising inflation mean savers have had a really tough time for a while now, but Atom is determined to offer a better alternative to that available from the traditional banks.
“We’re hoping that by having shorter-term products available, our great savings rates are opened up to a larger number of UK savers, not just those who are able to lock their money away for a significant period of time.”
How do these new products stack up?
Offering a three-month and six-month saver is certainly eye-catching, but there are other similar products on the market that savers should consider.
Secure Trust Bank offers a much higher 1.68% for their 90-day notice account – effectively the same as a three-month fix. This account can be opened online. The caveat, however, is the initial deposit for this account is much higher, at £1,000 minimum and the rates are .
In terms of a six-month period, accounts with this time frame really are fewer in number. The nearest rival to Atom’s new offering is Secure Trust Bank, which offers a 180-day notice account with a rate of 1.77%. Alternatively, Paragon offers a 120-day notice account with a rate of 1.66%, although note this is effectively four months not six.
This means that Atom’s six-month account offering 1.8% is a best buy if you’re looking for something in this time frame.
The Moneywise verdict
Atom’s three-month account doesn’t come close to being a best buy. In fact, it is currently beaten by the top easy-access rates on the market, such as the Post Office Money Online Saver Issue 31, which offers 1.33%. There is little reason to elect for a three-month fixed account when you can have a better rate and easy access to your money.
However, if you are specifically looking for an account with a six-month fixed rate, then Atom’s account is offering the best rate on the market right now.