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.
[SPOTLIGHT]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