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Co-operative Bank savings rates rise by up to 0.25%

New fixed-rate accounts enter Best Rate tables

Piggy bank with padlock, fixed rate savings bond

Which? Recommended Provider, The Co-operative Bank, has scored a Best Rate savings hat-trick with its competitive fixed-rate bonds.

Rates on the bank’s fixed-term accounts have risen by up to 0.25%, earning them a place in the Which? Best Rate savings tables. The one-, two- and three-year fixed-rate accounts are now paying 3.50%, 3.75% and 4.00% AER respectively on initial balances of £1,000 and more. Customers can either open an account at any of the 342 Co-operative Bank or Britannia branches, by post, by downloading an application form online or requesting one by phone.

An attractive interest rate

Which? savings expert Jo Langenhan said of the new deals: ‘The latest selection of fixed-rate accounts from The Co-operative Bank is great news for savers, especially if you are able to tie your money up for at least a year. If you are unable to lock your money away, it’s worth considering the top-paying instant access savings accounts from Krbs and Santander at 3.20% AER instead. The Direct Savings account from Krbs is bonus-free so if you don’t want to worry about switching once a bonus period has ended, this could be the account for you.

The Co-operative Bank came second in our latest savings account customer satisfaction survey with a score of 68% and achieved Which? Recommended Provider (WRP) status.

Beware of penalties

To get the higher interest-rates usually offered by fixed-term accounts, savers need to ensure that they are able to tie their money up for the required period as partial withdrawals or early closure will be subject to a penalty fee.

You can find out more about top-paying instant access and fixed rate savings account and cash Isa deals in our weekly hot savings deals round-up.

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