Two smaller banks, GB Bank and Oxbury Bank, have taken the top spots in the best buy savings tables with their fixed-rate deals. GB Bank is offering a two-year fixed-rate bond with an interest rate of 6.35%, while Oxbury Bank is offering a two-year fixed-rate bond with an interest rate of 6.30%. These rates are significantly higher than the base rate of 5.25% set by the Bank of England in March 2023.
The introduction of these competitive savings deals comes as interest rates continue to rise in the UK. The increased rates make savings deals more attractive to customers looking to grow their savings. This development is a significant change from the low interest rates seen during the COVID-19 pandemic.
Meanwhile, Revolut, a digital banking service provider, has introduced a new monthly prize draw for its customers. The prize draw, which has a total prize fund of £500,000, will give customers the chance to win cash prizes ranging from £1,000 to £50,000. This move aims to incentivise customers to save and deposit money into their Revolut accounts.
The introduction of these new savings deals and the prize draw by Revolut may prompt other banks to re-evaluate their savings products. This could lead to a more competitive market, benefiting customers in the long run.
GB Bank's two-year fixed-rate bond is available to customers with a minimum deposit of £1,000 and a maximum deposit of £250,000. Oxbury Bank's two-year fixed-rate bond is available to customers with a minimum deposit of £1,000 and a maximum deposit of £500,000. The terms and conditions of both deals are subject to change, and customers should review the details carefully before making a decision.
The UK's savings market is becoming increasingly competitive, with smaller banks and digital banking providers offering attractive savings deals. This trend is likely to continue as interest rates remain high and customers seek higher returns on their savings.