Shawbrook Bank has launched a new easy access savings account paying an interest rate of 4.31% AER.
Savers can open an account with as little as £1, and there are no restrictions on withdrawals. Sally Conway, savings expert at Shawbrook, said: “With household budgets under pressure, people want savings products that work harder without locking them in. Our Easy Access Bonus Savings Account offers a competitive rate, paired with the flexibility to deposit or withdraw whenever needed. By lowering the entry point to £1, we’re opening the door to savers who want to start small but still earn a meaningful return.”
The interest rate includes a 2.31% AER bonus for the first 12 months, after which the rate will drop. Interest is paid monthly, which works well for those looking for a regular income boost.
The account can only be opened online by savers aged 18 and over. They must also be UK tax residents living in the UK.
Based on the current interest rate, a £1,000 deposit is estimated to earn £43 over 12 months, bringing the total balance to £1,043.
Easy-access accounts are one of the more simple savings products on the market, as the terms are typically most flexible. They allow savers to make payments and withdrawals with minimal restrictions.
How does the account compare?
Digital bank Chase tops the list at the time of writing, with an Annual Equivalent Rate (AER) of 4.5%. The rate includes a 2.5% AER bonus for 12 months. There is no minimum deposit required to open an account, and there are no restrictions on withdrawals.
Customers can own up to 10 interest-earning savings accounts with Chase at a time, which the provider says can help people save towards different goals. Savers aged 18 and over must have a smartphone with a UK mobile number to bank with the provider. They must also be a resident and tax resident of the UK only. Up to £3million can be saved in the account overall.
Sidekick’s Multi Shield account pays an interest rate of 4.48% AER on a minimum deposit of £10,000. The rate includes 1% bonus for six months on deposits between £10,000 to £85,000. A rate of 3.43% is paid in deposits that exceed £85,001. There are no restrictions on withdrawals, and savers must be aged 18 and over to launch the account.
Cahoot places just behind with an interest rate of 4.4% AER on its Simple Saver account. There is no minimum deposit to launch, and up to £2million can be saved. Interest is also paid monthly on deposits up to £500,001, and there are no restrictions on withdrawals.