One of the latest financial institutions to do this is Recognise Bank which has hiked interest rates as of this week. This comes after the Bank of England raised the country’s base rate to 2.25 percent in an attempt to address inflation. Following this move, banks and building societies have passed this rate rise to their customers’s savings accounts with Recognise Bank following suit.
The bank has confirmed an increase to the interest rates on its current 35 Day Notice and 95 Day Notice Personal Savings Accounts.
Following this decision, the 35 Day Notice Account now pays savers a rate of 1.25 percent AER.
Furthermore, Recognise Bank has raised the 95 Day Notice Account and now pays people an interest rate of 2.20 percent AER.
All of the bank’s Personal Savings Accounts have been created to be easy to use, open and manage online.
READ MORE: 70 health conditions qualify for extra £156 a week in PIP from DWP
This includes access to telephone customer support to assist with any potential queries from customers.
Each account is also protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000.
Dean Carter, the group treasurer of Recognise Bank, outlined why the financial institution is choosing to help savers in this current climate.
Mr Carter explained: “It’s an uncertain world at the moment with economic upheaval and spiralling costs, so we want savers to know they can rely on Recognise Bank.
DON’T MISS
“We offer consistently good rates, a choice of products, the ease and convenience of online saving, and the peace of mind that their money is safe with FSCS protection.”
The bank also hiked the interest rate of its Business Easy Saving Account following the Bank of England’s intervention.
As of this week, this particular savings account now pays Recognise customers a rate of two percent AER.
This has been one of the banks most popular products and allows for “quick access” to money, according to Mr Carter.
READ MORE: Paramedic shares how she dishes up tasty meals costing 68p per portion
He added: “Our Business Easy Access Savings Account is a great way for SMEs to help build a cushion from the impact of cashflow issues, or just to earn interest on money they’ve put aside for future bills and payments.
“It offers a decent rate when they don’t need their savings, and quick access to their cash when they do.
“It’s a tough time for many SMEs. We know that inflation is impacting them in terms of their own expenses and energy costs, and the cost-of-living crisis is damaging the wider economy, with a knock-on effect on customer footfall and sales.
“At Recognise we want to do our bit by providing them with certainty around their business savings.”
In reaction to the base rate rise, experts have shared how savers are likely to be impacted in the coming months.
Alice Haine, a personal finance analyst at Bestinvest, said: “The only bit of good news this week has been rapidly improving savings rates, which are now jumping up at the fastest pace since the cycle of interest rate hikes started at the end of last year.
“With the best easy access accounts now topping the two percent mark and fixed rate accounts – where cash is locked away for a set period – hitting 4.32 percent, savers can finally get a decent-ish return on their nest eggs.
“But with interest rates rising all the time, it is imperative to make your savings work as hard as possible so switch accounts if your provider is not delivering a competitive return.”
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
