Hampshire Trust Bank: top savings rates from bank you've never heard of
Hampshire Trust Bank is making its way up the savings best buy tables.
The savings best buy tables have seen all sorts of new and exotic names over the past couple of years. The latest bank offering competitive rates which isn't exactly a household name is Hampshire Trust Bank.
So just who is Hampshire Trust Bank? And how do its savings accounts compare?
Who is Hampshire Trust Bank?
Hampshire Trust dates back to the 1970s, but it is only since it was bought out by investment group Alchemy Partners in the middle of last year that it has become something of a player in the national savings market.
As well as savings accounts, Hampshire Trust Bank offers various forms of finance for businesses, including bridging loans and commercial finance.
It doesn't have a branch network though, so you won't be able to handle your banking in person.
Hampshire Trust Bank is covered by the Financial Services Compensation Scheme (FSCS), meaning that your money is just as safe as it is with the leading high street banks. That means that your first £85,000 of savings are fully covered should the bank go bust.
How its savings rates compare
At the moment Hampshire Trust Bank offers five savings accounts: an 18-month fixed rate bond, a two-year fixed rate bond, a three-year fixed rate bond, a 90-day notice account and a 120-day notice account.
First let's take a look at how the three fixed rate bonds shape up:
18 month
|
Account |
AER |
Minimum investment |
Access |
|
Al Rayan Bank Fixed Term Deposit* |
2.02% |
£1,000 |
Online, in-branch, post, phone |
|
Harrods Bank 18 Month Fixed Rate Deposit |
1.95% |
£20,000 |
In-branch, post |
|
FirstSave 18 Month Fixed Rate Bond |
1.9% |
£1,000 |
Online |
|
Hampshire Trust Bank 18 Month Bond |
1.9% |
£1,000 |
Post |
|
1.85% |
£1,000 |
Online, in-branch, post, phone |
|
|
Shawbrook Bank 18 Month Fixed Rate Bond |
1.8% |
£5,000 |
Online, post |
*Anticipated profit rate
Two year
|
Account |
AER |
Minimum investment |
Access |
|
Al Rayan Bank Fixed Term Deposit* |
2.32% |
£1,000 |
Online, in-branch, post, phone |
|
State Bank of India Fixed Deposit |
2.25% |
£10,000 |
In-branch, post |
|
Harrods Bank Two Year Fixed Rate Deposit |
2.25% |
£20,000 |
In-branch, post |
|
Close Brothers Select Gold Fixed Term Deposit |
2.15% |
£10,000 |
Post |
|
Hampshire Trust Bank Two Year Bond |
2.1% |
£1,000 |
Post |
|
Paragon Bank Two Year Fixed Rate |
2.1% |
£1,000 |
Online |
|
Saffron BS Two Year Members Fixed Rate Bond |
2.1% |
£500 |
In-branch, post |
|
Yorkshire Bank Retail Term Deposits |
2.1% |
£2,000 |
Online, in-branch, post, phone |
|
Clydesdale Bank Retail Term Deposits |
2.1% |
£2,000 |
Online, in-branch, post, phone |
*Anticipated profit rate
Three year
|
Account |
AER |
Minimum investment |
Access |
|
NS&I 65+ Guaranteed Growth Bond |
4% |
£500 |
Online, post, phone |
|
Secure Trust Bank Fixed Rate Bond Three Year Term |
2.51% |
£1,000 |
Online |
|
State Bank of India Fixed Deposit |
2.5% |
£10,000 |
In-branch, post |
|
Harrods Bank Three Year Fixed Rate Deposit |
2.5% |
£20,000 |
In-branch, post |
|
Axis Bank Fixed Deposit Account |
2.45% |
£50,000 |
In-branch, post |
|
2.41% |
£1,000 |
Online |
|
|
Hampshire Trust Bank Three Year Bond |
2.4% |
£1,000 |
Online |
|
Clydesdale Bank Retail Term Deposits |
2.4% |
£2,000 |
Online, in-branch, post, phone |
|
Yorkshire Bank Retail Term Deposits |
2.4% |
£2,000 |
Online, in-branch, post, phone |
|
Close Brothers Select Gold Fixed Term Deposit |
2.4% |
£10,000 |
Post |
|
BLME Sharia’a Compliant Premier Deposit Account* |
2.4% |
£25,000 |
Online |
*Anticipated profit rate
As you can see, while they're not the best deals around the Hampshire Trust Bank is a strong competitor, alongside many other other unfamiliar names like Al Rayan Bank (formerly the Islamic Bank of Britain) and Harrods Bank.
Notice accounts
If you don't want to lock your money up for quite so long, but want a better rate of interest than with an instant access account, you should take a look at a notice savings account. Here's how Hampshire's notice accounts shape up in their respective fields.
120 days notice
|
Account |
AER |
Minimum investment |
Access |
|
Al Rayan 120 Day Notice* |
1.81% |
£250 |
Online, in-branch, post, phone |
|
Hampshire Trust Bank 120 Day Notice |
1.75% |
£1,000 |
Post |
|
Marsden BS Branch Saver 120 |
1.75% |
£1,000 |
In-branch |
|
Paragon Bank 120 Day Notice Account |
1.6% |
£500 |
Online |
|
Shawbrook Bank 120 Day Notice Account |
1.6% |
£1,000 |
Online, post, phone |
90 days
|
Account |
AER |
Minimum investment |
Access |
|
Melton Mowbray BS DLRAA Affinity* |
1.76% |
£25 |
In-branch, post |
|
Hampshire Trust Bank 90 Day Notice |
1.6% |
£1,000 |
Post |
|
Julian Hodge Bank 90 Day Notice Deposit |
1.55% |
£10,000 |
In-branch, post |
*Only open to local residents who have been members of the society for five years
As you can see, Hampshire's accounts perform strongly over both notice terms.
For the sake of comparison, the best easy access account (if you don't happen to live near a Kent Reliance Building Society branch, which pays 1.5% on its branch-only account) is the Limited Access Saver from West Brom Building Society, which pays 1.4% but only permits six withdrawals without a loss of interest.
Better off with a current account
However, it's worth remembering that current accounts offer a better return than the best savings accounts at the moment. For example you can get 5% from Nationwide for a year on balances up to £2,500 with its FlexDirect account, while TSB is paying 5% on balances up to £2,000 (with no time limit on that rate) with its Classic Plus Account. For bigger balances you can get 3% on balances from £3,000 to £20,000 with the Santander 123 current account.
Compare current accounts with lovemoney.com
More on saving:
The best instant-access savings rates
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