A new savings account launched by thisbank aims to help bridge the gap between traditional easy access savings and consumers needing to lock their cash away for longer periods.
Limited withdrawal accounts look to do this by allowing customers to access their cash a set number of times over a 12-month period, in exchange for a slightly higher interest rate than an easy access account might offer.
That way, consumers can trade the knowledge that they can get to their cash in emergency situations, while also removing the temptation to dip into their savings at every opportunity.
Fixed-term bonds, by contrast, will usually lock the money away entirely for a year or other time period, with penalties applied or interest lost if customers do need to access the money and close their account – but the trade-off is that they can have a higher rate guaranteed, even if banks lower interest rates in the meantime.
Thisbank’s Triple Access Savings Account allows customers to earn 4.28 per cent (AER), with a minimum deposit of £1,000. Across a 12-month period, savers can access their cash three times without closing the account, while interest is paid monthly. The rate is variable.
Chris Waring, CEO of thisbank, said: “People tell us they want their savings to earn a competitive return, but they also want the reassurance that they can access their money if life changes. Too often, they’ve been forced to choose between flexibility and a better rate.
“Our new Triple Access Savings Account has been designed to remove that compromise. Customers can enjoy a highly competitive return while still having the confidence that they can withdraw their money up to three times each year if they need it.
“At thisbank we’re building products that are straightforward, transparent and genuinely useful. Banking shouldn’t be about hidden catches or unnecessary complexity, it should help people make the most of their money, whatever they’re saving for.”
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Capital at risk.
Terms and conditions apply.
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While there are several standard savings accounts and cash ISAs which have higher rates, most have limited-time bonuses included to top up the interest figure or have a low ceiling for maximum funds customers can save, such as Cahoot’s 5 per cent offering up to £3,000 balances, but no interest paid at all over that figure. For limited withdrawal accounts, Moneybox’s 4.45 per cent cash ISA is the market leader, also allowing three withdrawals over a year – but if you’ve used your ISA allowance or want a non-ISA account for any other reason, thisbank’s new deal is a reasonable alternative.
Chase remains the outlier, with their 4.5 per cent rate for an easy access account – if you open a current account with them first.