A new British bank, Aldermore, has launched its challenge to more established banks with a five-year fixed-rate bond offering 5.4% and a two-year bond paying 4.43%.
The bank’s variable rates are less outstanding, but its 30-day Notice Cash Isa pays a competitive 3.15%.The minimum deposit for the fixed rate and notice accounts is £1,000, while the Isa requires a minimum deposit of £3,600. For more on fixed rate savings accounts, see Which? Best Buys and for cash Isas see our Best buys.
As it is UK based, the bank is covered by the Financial Services Compensation Scheme which guarantees deposits up to £50,000. It was formed by the merger of Ruffler Bank and Base Commercial Mortgages earlier this and is owned by the private equity group AnaCap Financial Partners.
Ian Robinson, Which? Money Researcher, said: ‘Following recent turmoil in the financial world, it’s noteworthy to see a new bank opening. Particularly when it is UK based, offers competitive rates to savers and is run by a former Barclays director.’
For more details see www.aldermore.co.uk
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