Bank raises interest on easy access savings account to 4.75% and earns 'excellent' rating
Experts have described the new interest rate as "enticing" as it takes a more "competitive" position in the easy access savings table.
GB Bank has raised the interest on its easy access savings account to 4.75 percent, earning an “excellent” Moneyfactscompare rating.
Easy access accounts are typically more flexible, allowing savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
In the current high cost-of-living environment, a survey by Hodge found that more than half of respondents have had to dip into their savings for everyday expenses, making these accounts especially popular at present.
Savers can launch GB Bank’s account with a minimum deposit of £5,000 and interest can be paid monthly.
Commenting on the deal, Caitlyn Eastell, finance expert at Moneyfactscompare.co.uk, said: “This week GB Bank has increased the rate on its Raisin UK - Easy Access Account, which now pays an enticing 4.75 percent gross.
“Savers who have £5,000 to invest and desire flexibility with their cash may find this an attractive choice as it allows unlimited withdrawals and further additions.”
However, Ms Eastell pointed out: “It is worth noting that both are subject to a minimum transaction amount of £500.
“The deal takes a competitive position in the top tables but on assessment earns an Excellent Moneyfacts product rating.”
While GB Bank may be offering a competitive deal, it isn’t quite topping the easy access savings account leaderboard.
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Ulster Bank's Loyalty Saver is still offering the highest Annual Equivalent Rate (AER) of 5.2 percent on deposits of over £5,000.
Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent. Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
Online bank Cahoot, a division of Santander, is offering an AER of 4.85 percent on its Simple Saver (Issue Four). Savers need just £1 to launch the account and interest is paid on the anniversary of opening. Withdrawals are permitted at any time.
Ms Eastell urged: “It is crucial savers keep on top of the changing market and make the switch to ensure they are not getting a raw deal, especially as we have seen some of the top rate deals drop below five percent. It would not be too surprising to see more providers adjusting their rates.”
