A Tesco Bank savings account has been named among Moneyfactscompare.co.uk's 'Picks of the Week', with the one-year Fixed Rate Saver now paying 4.84% AER. The weekly roundup highlights what the comparison site considers to be the finest new products or rate changes in the consumer finance market.
Tesco Bank Fixed Rate Saver details
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."
Savers need at least £2,000 to open the account, and further additions can be made for 30 days from opening. Earlier access is not permitted, so savers should be comfortable committing to the full term. The account receives an Excellent Moneyfacts product rating.
Chip Smart Cash ISA and Birmingham Bank highlighted
This week's standout ISA choice was the Chip Smart Cash ISA, which now pays 4.60% AER. Eastell noted this includes a 0.85% AER bonus for the first 12 months, so savers should set a reminder to review the deal once it expires. The account can be opened with as little as £1, and access is permitted, though no interest is paid for the month if the account is closed or transferred out.
The Birmingham Bank 95 Day Notice Account was also highlighted, with its rate boosted to 4.36%. Savers need £5,000 to open it, and unlimited penalty-free withdrawals are permitted via a nominated account, though notice is required. This account also earns an Excellent Moneyfacts product rating.
Zopa Biscuit Current Account selected
Among everyday accounts, the Zopa Biscuit Current Account was selected. Eastell said Zopa has reduced the credit interest to 1.00%, but the account remains competitive in the top 10. Eligible customers can opt into one additional perk, including 3% cashback on monthly spending at restaurants, takeaways and bakeries.
Other perks include a boosted credit interest rate of 2.75% AER and 3% cashback on up to £150 of direct debits. The account does not currently offer an arranged overdraft. On assessment, this deal earns an Excellent Moneyfacts product rating.
