Bank boosts interest rate on savings account to ‘excellent’ 4.91% (Image: Getty)
OakNorth Bank has increased the on its 95-Day Notice savings account, earning an “excellent” Moneyfacts rating.
Notice accounts act as a middle ground between easy access and fixed rate accounts.
These accounts allow people to withdraw money when needed, but they have to give the bank an agreed amount of notice or they could face penalties.
Savers can launch OakNorth Bank’s 95-Day Notice Base Rate Tracker account with a minimum deposit of £1 and interest can be paid monthly.
Commenting on the deal, Caitlyn Eastell, spokesperson at , said: “OakNorth Bank has changed the issue number and increased the rate on its 95 Day Notice Base Rate Tracker Account.
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The savings account is taking a “prominent” position in its sector. (Image: Getty)
“Paying 4.91% AER / 4.80% gross, it takes a prominent position when compared to other products in the monthly interest and notice account sectors, and can be opened with as little as £1.
“Savers willing to give prior notice to access their pots may find this an enticing deal as it pays a higher rate than can be achieved with most easy access accounts. Overall, the deal earns an Excellent Moneyfacts product rating.”
While Oxbury Bank may be offering an appealing rate for 95-day notice accounts, it doesn’t quite top the table in this sector.
Plum’s 95-day Notice Pocket (Premium) pays an Annual Equivalent Rate (AER) of 5.05%.
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Interest is paid daily on minimum deposits of £1. Plum’s Premium subscription costs £9.99 per month and comes with a range of other perks, such as access to higher interest accounts, options to invest and set savings goals, and earn extra cashback.
OakNorth Bank’s Prosper account places just behind, which pays an AER of 4.95% on its 95-Day Base Rate Tracker account. The rate includes a 0.18% bonus and interest is paid daily.
With the Bank of England widely anticipated to announce another cut to central in February, savers are being urged to act quickly to secure savings deals now before fall further.
Ms Eastell said: “To avoid disappointment, savers would be wise to secure any enticing deals before they disappear. If consumers are unsure which account is best suited to their needs, they should seek independent advice in the first instance and carefully consider any opening restrictions.”