Best-buy one-year savings account pays 5.25%: What you need to know

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Savers can now get 5.25 per cent on a one-year fix thanks to a new best-buy deal.

The one-year deal* is being offered via the savings platform, Raisin UK, by the  National Bank of Egypt. 

It is fully Financial Services Compensation Scheme protected, meaning saver deposits are protected up to £85,000 per person.

Someone putting £10,000 in the account will earn £525 in interest by the end of the 12 month period.

The average one-year deal currently pays 4.15 per cent, according to Moneyfacts.

That means someone putting £10,000 into Raisin’s new deal will be £110 better off than the market average after 12 months. 

The next best rate on the market pays 5.07 per cent, courtesy of SmartSave Bank.

> Check out the best fixed rate savings deals here

National Bank of Egypt is also offering a market-leading six month fix paying 4.55 per cent and a nine month fix paying 4.78 per cent, for those who’d prefer to fix for a shorter time.

To open this savings account savers must apply online through Raisin’s platform. 

They will then need a minimum of £10,000 to open this particular deal. They will then be permitted to put away a maximum of £85,000.

As this is a fixed rate deal, withdrawals are not permitted before the end date, except in exceptional circumstances such as if an account holder dies, becomes mentally incapacitated or bankrupt.

What is a savings platform?

Raisin UK* is one of a number of savings platforms that have emerged in recent years. 

They help savers keep track of their cash more easily, and move money to better-paying accounts with less admin.

They are offering some of the best rates on the market, allow savers to manage multiple accounts in one place and in some cases offer exclusive deals that beat the market.

Rival platforms include Hargreaves Lansdown’s Active Savings,* Flagstone, AJ Bell’s Cash Savings Hub*, and Aviva Save.

A platform like Raisin makes sense for proactive savers who like to regularly move their money to secure the best rates possible, without having to set up multiple accounts in the process.

The new best buy is available via the online savings platform, Raisin UK

Raisin scores 3.8 out of 5 star rating on Trustpilot and has a 3.2 star rating on Google reviews. 

While it has many good reviews, it also has negative ones too. Some of the complaints are around slow customer service and lengthy wait times when transferring funds.

Raisin says once customers have applied for a savings account and transferred their full deposit amount, the deposit will be set aside from their available balance, while their application is being reviewed.

Once their application has been approved, their full deposit amount will be transferred to the partner bank automatically.

It says it typically takes less than two business days from when their full deposit amount is available in their Raisin account for an approved savings account to open.

What about National Bank of Egypt?

Some may be worried about putting their cash into a foreign-owned bank they are unlikely to have heard of.

The bank, headquartered in Cairo, was established in the late 19th century and has had a UK-incorporated presence since 1982. It is Egypt’s oldest and largest bank.

It offers buy-to-let mortgages, corporate and retail banking, along with trade finance. 

Crucially, it has Financial Services Compensation Scheme protection, which protects money up to £85,000 per individual and £170,000 per couple.