Bank urges people to check their savings as it changes rates

Aldermore has boosted the interest rates on a range of accounts including a fixed rate account which is now paying six percent.

The rates on these accounts have increased with immediate effect:

Fixed Rate Accounts (new and existing customers):

• One Year Fixed Rate Account – 5.9 percent, up from 5.79 percent
• Two Year Fixed Rate Account – six percent, up from 5.8 percent.

Double Access Account:

• Double Access Account – 4.2 percent, up from 3.85 percent.

120 Day Notice Account (all issues):

• 120 Day Notice Account – 4.3 percent, up from 3.9 percent.

Alex Myers, director of savings at Aldermore, urged savers to take action. He said: “It’s crucial that people take time to review their finances regularly, especially as the wider economic environment is so challenging.

“Spending a little time now on comparing rates and the benefits of different accounts will pay dividends further down the line.”

In June, the provider increased its rates twice in a week, on a range of fixed rate Bonds, ISAs and other savings accounts.

Many banks and building societies have increased their rates several times over the past year and a half, as the base interest rate set by the Bank of England has continually increased.

The central bank began to hike the base rate in December 2021 in efforts to tackle the rising rate of inflation, with the base rate currently at five percent.

Inflation remained at 8.7 percent in the most recent figures with analysts predicting Bank of England bosses will continue to increase the base rate. This means savers could see their rates further increase.

‌This past week, NS&I increased the rate on its Guaranteed Growth Bonds and Guaranteed Income Bonds to five percent for new customers, up from four percent and 3.9 percent respectively.

The rate on the two and three year Guaranteed Income Bonds, which are only currently available to existing customers, has increased to 5.1 percent.

NS&I has also increased the prize fund rate for Premium Bonds from the August draw, with the rate to increase from 3.7 percent to four percent.

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