Challenger banks pushing up savings rates

Savings interest rates have slowly begun to pick up over the last few months, particularly with regards to fixed rate bonds.

Paragon Bank, Shawbrook Bank, Secure Trust Bank and Charter Savings Bank have been jostling for best buy top spots with the latter being the most consistent player for fixed rate savings deals this year

You may not yet be familiar with some of these names but they are fully regulated and offer the same level of Financial Savings Compensation Scheme protection as you’d get from your high street bank.

The best fixed savings rates at present include the 2.15% AER 1 year and 2.35% AER 18 month bonds from Shawbrook Bank, alternatively you can earn 2.55% AER with Charter Savings Bank if you are comfortable with a longer term 3 year lock in.

The recent competition has seen some better deals appearing for those who want to stick with an FSCS protected provider, even though the level of protection is to be cut from £85,000 per person per authorised provider to £75,000 per person from next January.

If you’re prepared to take a calculated risk to secure a far higher interest rate, retail focused Peer to Peer firms Lending Works, Zopa and RateSetter are worthy of closer inspection.

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