Savings update as interest rates become ‘incredibly competitive’ – are you eligible for 2%

Inflation: Experts outline the impact on savings and investments

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

From today, April 22, Ford Money has increased interest rates on six of their accounts. As the savings market turns increasingly in favour of savers, it is vital that they shop around for the best accounts and interest rates for their situation.

Alongside increasing the interest rates, the new rates and accounts are now available to all new and existing Ford Money customers. 

The Fixed Saver one year account is increasing by 0.20 percent, from 1.50 percent to 1.70 percent. 

The two year account is also increasing by 0.20 percent from 1.75 percent to 1.95 percent. 

The highest interest rate being increased is the three year fixed saver account which was at 1.85 percent has now risen to two percent. 

With regards to the Ford Money Cash ISA accounts, both the one year fix and three year fix are rising by 0.10 percent. 

The one year account is rising to 1.25 percent and the three year will now be at 1.65 percent. 

The two year account is rising by 0.15 percent from 1.45 percent to 1.60 percent. 

Speaking about the increases, Rachel Springall, finance expert at Moneyfacts, said: “It’s great to see Ford Money increasing rates both on its fixed bonds and fixed ISAs, at a time where interest rates across both sectors are on the rise.”

However, she added: “Due to rivalry in the top end of the market, these rates can be beaten elsewhere.

“The fixed rate bond market is incredibly competitive at the moment, particularly for short-term fixed bonds, where today the top one-year bond from Charter Savings Bank at 2.05 percent gross is the highest rate for a one-year fixed bond that we’ve seen on our records since November 2019.”

She recommended that savers looking for fixed accounts at a high rate “may also want to consider spreading their cash into more flexible savings vehicles”. 

Ms Springall also highlighted that more interest rate rises could be on the horizon in coming weeks.

Ford Money said that these rises are part of their “routine” reviewing of their products and their position in the savings market. 

They said: “We hope that by increasing the rates on our Fixed Saver one, two and three year products and our Fixed Cash ISA one, two and three year products, we are providing savers with a better rate for their money. 

“All changes at Ford Money are made to ensure we’re offering customers the most appropriate and competitive accounts possible at any given time in the market.”   

With all of these accounts, due to their fixed nature, savers will not be able to make deposits or withdrawals during the fixed term. 

The accounts require a minimum deposit of £500 with a maximum of £2million. 

The interest for these accounts can also be paid monthly or annually, depending on the customers’ preference. 

With both the fixed saver and Cash ISA accounts, savers will have 14 days once the application is made to make deposits into their account. 

During this time, customers can also cancel their account without incurring any charges. 

Source: Read Full Article