Newcastle Building Society has withdrawn its best buy easy-access rate from sale after little more than two days on the market, as competition between savings providers continues to ramp up.
Newcastle’s Base Rate Tracker account was launched on 28 June and paid 4.3 per cent interest.
While that rate could change the building society guaranteed that it would not fall less than 0.7 percentage points below the Bank of England’s base rate until 31 December 2025.
Savers who did not act quickly have now missed their chance to sign up, as the account was pulled on 30 June – but two bigger providers, Investec and Paragon Bank, have now stepped in with new rates that are almost as good.
While the best buy may have been pulled, a number of other banks and building societies have stepped up their rates to fill the void
Investec has increased the interest rate on its Online Flexi Saver account to 4.2 per cent, up from 3.82 per cent.
The account is an instant-access deal that allows unlimited deposits and withdrawals. It must be opened and managed online.
Savers will need a minimum balance of £5,000 to get started and thereafter can deposit up to £250,000. However, savers should remember that deposits are only protected up to £85,000 per person under the UK’s deposit guarantee scheme.
> Check the best easy-access savings rates
Meanwhile Paragon Bank upped the rate on its triple access account from 3.91 per cent to 4.25 per cent.
Paragon’s deal permits savers only three withdrawals every 12 months without impacting their interest rate.
Four withdrawals or more will result in the rate dropping to 1.5 per cent.
How long will those rates last?
James Blower, founder of website Savings Guru, believes these two deals should stick around for a little longer than Newcastle’s account.
He said: ‘Investec is the tenth-largest bank in the UK and Paragon holds £12billion of savings, so can sustain a period at the top – although I expect they’ll only be there a week or two maximum.’
A number of other providers have also upped rates to similar levels in recent days.
RCI Bank upped its easy-access deal from 3.85 per cent to 4.2 per cent. It also offers a 14-day notice account paying 4.3 per cent.
Monument bank now pays 4.2 per cent on its easy-access deal, although savers will need £25,000 to get started and also be prepared to open and manage their account via its mobile app.
Leeds Building Society is also now paying 4.2 per cent on its Limited Issue Online Access Account.
Leeds is the fifth largest building society in the UK and looks after £14.5bn of savings.
The account offers unlimited withdrawals and has a fixed maturity date of 1 September 2024, when interest will be paid.
But if the balance falls below £1,000, the rate will plummet to 0.05 per cent.
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