Three best buy savings deals launched by BLME, paying up to 3.75% interest

Savers can now secure up to a 3.75 per cent return on their cash, after the Bank of London and the Middle East launched three best buy accounts.

The London-headquartered bank is offering a one-year fixed rate bond paying 3.4 per cent, a five-year fixed bond paying 3.75 per cent and a 90-day notice account paying 2.52 per cent.

All three savings deals lead the market, with the two fixes featuring at the top of our independent best buy fixed rate savings league table.

Eligible deposits held with BLME are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).

Savers opting for the best one-year deal can open an account with a minimum of £1,000. However, once opened making early withdrawals or adding funds is not allowed. 

Interest on the average one-year fixed rate is bond at an almost 10-year high, according to Moneyfacts, with the typical rate paying 2.29 per cent.

This means BLME’s 3.4 per cent deal offers savers a 1.11 percentage point premium above the average.

Someone depositing £20,000 in BLME’s one-year deal can expect to earn £680 in interest after one year.

For those wanting to earn a respectable rate of interest, but who are unprepared to lock their money away for a year or more, BLME’s notice account may offer a compromise. 

Savers can add funds when ever they wish to. They can also withdraw multiple times, albeit no less than £1,000 each time and after a 90 day notice period.

Someone depositing £20,000 into BLME’s notice account could expect to earn £504 after one year. 

The average notice account on the market pays considerably less at 1.41 per cent, according to Moneyfacts, whereas BLME’s deal pays 2.52 per cent, considerably above the best easy access savings rates in our tables.

Even the next-best deal on offer with a 90-day notice period pays 2.2 per cent.

What is BLME? 

BLME is a Sharia complaint bank, founded in 2006. The Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

It was named as Best Fixed Rate Account Provider four years running in the Moneyfacts Awards, between 2018 and 2021.

It was also awarded the Best Savings Provider in 2021 by Savings Champion.

Instead of paying an interest to savers, BLME – as an Islamic bank – invests customers’ deposits in ethical, Sharia compliant activities to generate a profit.

Such profit rates deliver a Sharia-compliant expected return rather than interest, as with standard accounts. 

Best buys: For savers looking to earn maximum interest on their savings, BLME’s new accounts could be an attractive option

Should you sign up to BLME’s rates?

If the best rate is what you are after, then this could well be an easy decision.

The best one-year deal and notice accounts are both currently comfortably ahead of the competition.

The fact that deposits are protected up to £85,000 by the UK deposit guarantee scheme should give most savers the peace of mind to go with a provider they may not have heard of before.

The previous awards it has won as a savings provider should also give savers comfort. 

Applying seems easy enough. According to the BLME website, The online form will take approximately 10 minutes to complete.

However, in terms of customer service, it may be worth testing it out before applying by contacting the bank.

For those requesting a call back from its savings team the BLME website states: ‘The savings team is working remotely and is available Mon-Fri between the hours of 09:00 – 17:00. 

‘Due to current high volume of requests, it may take up to two working days to contact you in the chosen timeslot.’

How to find the best savings rates

Savings rates have been in the doldrums for many years but the situation was hugely exacerbated by the pandemic and the emergency base rate cut to 0.1 per cent.

But there are ways to ensure your cash is at least in the best of the bunch at all times. 

Checking top rates is essential, but it is also possible to make life easier overall and manage your savings pots in one place. 

Over the past few years a number of savings platforms have launched, offering savers the option to switch as and when better deals become available and manage accounts from different banks and building societies.

They each work slightly differently and include their own exclusives. To check out what’s on offer take a look yourself:

Platforms featured below are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. 

> Raisin* 

> Hargreaves Lansdown Active Savings*

> Flagstone  

Or you can view This is Money’s comprehensive best buy savings tables here, independently curated by savings guru Sylvia Morris:

> Compare best savings rates now