Interest rates to rise by up to 3.5% by end of 2022 says expert
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Over the course of the last year, the Bank of England (BoE) has continued to increase the base interest rate as a way to combat rising inflation. Last month, the rate was increased by 0.5 percentage points, to 1.75 percent. The next increase was expected to be this week however the Bank of England delayed this until next week to allow a period of mourning after the death of Queen Elizabeth II.
With the base rate rising, some banks have begun to follow with many upping the rate it offers to their customers.
One of the accounts which was highlighted by Moneyfacts.com and by the Money Saving Expert website was Shawbrook bank’s Easy Access Account Issue 30.
The account offers a “highly competitive rate” in the easy access sector of 1.81 percent AER according to Moneyfacts.com.
People will need a £1,000 deposit to open the account and the 1.81 percent interest rate is offered to those who have this amount in their account.
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The account is variable, which does mean that the interest rate is subject to change.
The interest rate given when the balance falls below £1,000 is relatively low at 0.05 percent AER.
The maximum deposit for the accounts sits at £85,000 for sole accounts.
However, joint accounts are available and the maximum deposit for those is £170,000.
Only one easy access account can be held per customer which can be a sole or joint account.
As it is an easy access account, there is no limit on the number of withdrawals a person can make and notice does not need to be given to make a withdrawal.
The only catch however is that the minimum withdrawal amount is £500.
Shawbrook Bank said that if it receives a withdrawal request before 2.30pm on a working day, then savers should expect to receive the money into their nominated account on the next working day.
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Shawbrook Bank state that a deposit of £1,000 could generate an estimated balance of £1,018 in one year with a rate of 1.81 percent.
The interest on the account is calculated daily and is paid on the anniversary of the date Shawbrook Bank receives the first deposit.
This will be either monthly or annually depending on the product someone chooses.
The account can be opened and managed online through Shawbrook Bank’s secure eSavings portal or by telephone.
The Money Saving Expert website also highlighted the account as one of its top three in its easy-access accounts.
Money Saving Expert said: “Zopa is our top pick as it offers the joint highest rate of 1.81 percent and you can start saving from just £1.
“It’s app-only though, so if you’d prefer an online account Shawbrook Bank also offers the top rate of 1.81 percent, min £1,000.
“Each withdrawal has to be a minimum of £500, though if you need less just withdraw £500 then put the rest straight back.”
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