The Moneyfactscompare.co.uk Pick of the Week has highlighted an HSBC deal that rewards customers with £250 cashback. The weekly feature showcases the finest new products and rate changes in the consumer finance market, covering savings, mortgages, current accounts and more.
This week, the team singled out two savings accounts and two mortgage deals, rating each product while one of their experts explained the reasoning behind the selections.
Savings accounts chosen by expert
Turning first to savings, the Chetwood Bank 3-Year Fixed Rate Savings Account caught the team's attention. Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: "Chetwood Bank has increased the rates on a selection of its Fixed Rate Savings Accounts, including the three-year option. The account now pays a market-leading 5.23% and may be an ideal option for savers willing to lock away their cash for the medium-term for the benefit of guaranteed returns."
Eastell added: "Savers will need to invest at least £1,000, but further additions can be made within 14 days of the account opening. Adding to its appeal, there is no maximum investment, meaning this could be an attractive option for savers with significant balances.
"However, as is the case with many fixed bonds, withdrawals are not permitted, so consumers should be comfortable with losing access for the full term, but it may be worthwhile having a separate flexible pot to cover emergency expenses. On assessment, this account receives an Excellent Moneyfacts product rating."
The Close Brothers Savings – 95 Day Notice Account (Issue 16) was also highlighted this week. Eastell said: "This week Close Brothers Savings launched a new 95 day Notice Account, which takes a prominent position as a Moneyfacts Best Buy. The account pays an appealing 4.35% on balances starting from £10,000.
"Notice accounts are a useful in-between of an easy access account and a fixed bond. They can be an ideal option for savers in need of stashing their money away for a set term who know exactly when they'll need to access their cash.
"Adding to its appeal, the account permits unlimited penalty-free withdrawals via a nominated current account but, as the name suggests, savers are required to give 95 days' notice should they wish to make any withdrawals. On assessment, this account earns an Excellent Moneyfacts product rating."
Mortgage offers spotlighted by specialist
Moving on to mortgages, the NatWest two-year variable tracker rate mortgage, 60% loan-to-value, was selected. Eastell said: "In its latest residential mortgage update, NatWest has reduced selected variable tracker and fixed rate offerings. One deal to see a small cut is the two-year tracker deal at 60% loan-to-value which is now priced at a competitive 4.08%.
"Tracker rates may continue to be an attractive option for borrowers looking to save on costs as they offer much lower initial rates compared to those in the fixed market. However, borrowers must also understand that any changes to base rate can be immediately passed on to their monthly payments, so it's important their budgets are stress tested for potential rises.
"There is a reasonable £995 product fee attached but this is quickly offset by its free valuation incentive, which may make it a good option for those looking to save on initial costs. The cut is enough to see it take the market-leading spot in the Best Buys when compared to its peers and earns an Outstanding Moneyfacts product rating."
Lastly, an HSBC product featuring £250 cashback received an "outstanding" rating. The experts highlighted the lender's two-year fixed rate mortgage at 85% loan-to-value. Eastell said: "This week HSBC has reduced most of its fixed rate mortgage range, with reductions of up to 0.19%. While the two-year offering for homemovers has seen a smaller cut, it's enough to enhance the deal's appeal and solidify its place as a Best Buy.
"The deal is now priced at 5.39% and may appeal to those looking for certain and predictable monthly repayments for the next two years. Further adding to its appeal, borrowers looking to save on upfront costs may be pleased to see that there are no upfront fees and an attractive incentive package which includes a free valuation and £250 cashback. Overall, the deal earns an Outstanding Moneyfacts product rating."
