RCI Bank trumps rival easy access accounts with new rate
The Renault-owned bank tops the savings best buy table once again.
RCI Bank has boosted the interest rate on its Freedom Savings Account from 1.5% to 1.65%, making it the market leader once again.
The account promises no penalties, fees or notice periods.
And, after a period where savings rates were really in the doldrums, the arrival of RCI and some other challengers seems to have revived the market.
Who is RCI Bank?
Renault-owned RCI Banque launched over here as RCI Bank in June this year.
RCI has been in the international financial services industry for 90 years, including a UK car finance operation with Renault, Nissan, Dacia and Infiniti over the past 20 years.
It's important to highlight though that RCI's products are not covered by our Financial Services Compensation Scheme (FSCS) but by the French equivalent FGDR, up to the value of €100,000 (roughly £73,500).
The FSCS currently covers up to £85,000 at any one institution in the event of it going under, although this will drop to £75,000 at the beginning of next year.
How it compares
This rate rise is even better news for savers, pushing what was already a best buy past its competitors.
If you’re not convinced, take a look at how it compares to the best deals on the market right now.
|
Account |
Interest rate (gross AER) |
Minimum deposit |
Access |
|
1.65% |
£100 |
Online |
|
|
Virgin Money Defined Access E-Saver |
1.51% |
£1 |
Online |
|
Paragon Bank Limited Edition Easy Access |
1.46% |
£1 |
Online |
|
Kent Reliance Online Easy Access Account |
1.45% |
£1,000 |
Online |
|
ICICI Bank HiSAVE SuperSaver Savings Account |
1.40% |
£1 |
Online, over the phone |
|
GE Capital Direct Saver |
1.30% |
£500 |
Online |
|
NS&I Income Bonds |
1.26% |
£500 |
Online, by post or over the phone |
|
The Melton Online Easy Save |
1.26% |
£1,000 |
Online |
Current accounts are still better
Even though savings rates are improving, you'll still get a better deal with a current account. They're all easy access too.
If you've got a smaller savings pot, the TSB Classic Plus Current Account offers 5% interest on balances under £2,000.
Alternatively, you could got for the Nationwide FlexDirect Current Account which gives you 5% on balances between £1 and £2,500. Be careful though; the rate will drop to 1% after 12 months.
For savings of up to £3,000, the Tesco Current Account will offer 3% interest while the Clydesdale Bank and Yorkshire Bank Current Account Direct will pay 2% with a £150 welcome bonus. Lloyds will give you 4% on balances of £4,000-£5,000 with the Club Lloyds Current Account and Bank of Scotland will pay out 3% on accounts holding £3,000- £5,000 on its Classic Account with Vantage deal.
Looking for something a little more substantial? The Santander 123 Current Account offers 3% in-credit interest on balances between £3,000 and £20,000.
More on savings:
Where to earn most interest on your cash
Peer-to-peer lenders beat banks for customer satisfaction
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