- Savers get 4.84% ‘reward rate’ if they don’t withdraw money and 3.25% if they do
Savers can bag a top easy-access savings deal from Atom Bank paying 4.85 per cent – although it comes with a monthly interest penalty if the pot is tapped.
The bank, which launched in 2016, reduces the rate to 3.25 per cent if savers dip into their pot even once and it ‘resets’ to 4.85 per cent the following month.
The idea, it says, is savers can earn more if they don’t withdraw money by being rewarded with a higher interest rate.
Atom Bank’s new reward easy-access deal pays 4.84 per cent if savers don’t withdraw money and drops to 3.25 per cent if they dip in to their pot
There is no limit on how often savers will be able to access their money, they just won’t get the top rate if they do.
Atom’s reward rate of 4.85 is currently beaten only by Oxbury Bank, which pays 4.87 per cent but only on balances starting from £25,000.
The account can be opened by downloading Atom’s app and there is no minimum deposit needed.
All funds deposited in the Atom reward account are protected under the Financial Services Compensation Scheme. This means your money is protected up to £85,000 should Atom Bank fail.
How does it stack up to other easy-access deals?
Oxbury Bank’s easy-access deal pays a slightly higher rate of 4.87 per cent, so this account is not suitable for anyone with less than £25,000 to stash away.
Saving and investing app Chip offered the best easy-access deal on the market at 5 per cent but it was cut to 4.01 per cent this weekend.
The next best easy-access deal is offered by Coventry Building Society which pays 4.83 per cent.
Savers can access their money three times in a calendar year before being penalised by a rate cut.
If savers make a fourth withdrawal, they will receive a charge equal to 50 days’ interest, based on the amount they’re withdrawing.
This account can only be opened online. Savers opening an easy-access account with Coventry Building Society in a branch will get a rate of 4.33 per cent.
Monument Bank’s easy-access account pays 4.81 on deposits of £20,000 or more while Aldermore Bank’s easy-access accout pays 4.75 per cent. Savers can only access their money twice with this account or the rate will drop to just 1.5 per cent.
Rachel Springall, finance expert at Moneyfacts Compare said: ‘The account from Atom Bank sits highly in the top rate tables and may be an attractive choice for savers who don’t want to lock their money away for too long.’
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