AJ Bell has added two Aldermore short-term fixed savings accounts, which offer a market leading interest rate of 0.88% AER for nine months or 0.86% AER* for six months to its Cash savings hub on the AJ Bell Youinvest platform. Both accounts require a minimum deposit of £10,000.
Laura Suter, head of personal finance at AJ Bell:
“Some savers might be wary of signing up to a long-term fix with their cash savings, amid talk of a Bank of England base rate before the end of the year, but a six-month or nine-month fix could be the ideal place to park your money while we see if and when any rate hikes materialise.
“If you saved the minimum £10,000 for six months you’d get £86 interest at the end of the term, or £2 more for the nine-month fix. These are far better rates than the 0.01% many are earning on savings sitting in their current accounts at the moment – where your £10,000 will earn just £1 in interest over a year.
“The rates are also higher than the current easy-access account, which is currently paying 0.67% interest. This means at £20,000 of savings you get £38 additional interest for locking it up for half a year, which many savers will think is worthwhile.”
AJ Bell’s Cash savings hub makes it easy for people to manage their cash savings in one place. The key benefits to savers are:
- Ease of use – savers can browse a wide range of savings accounts in one place and open as many as they like from a range of UK authorised banks.
- Competitive interest rates – customers can choose between fixed term or notice accounts offering competitive savings rates over a variety of time periods, helping them improve returns from their cash savings.
- Free to customers – AJ Bell is paid by the banks, not customers.
- Peace of mind – savings via each bank are covered by the Financial Services Compensation Scheme up to £85,000.
An AJ Bell Cash savings hub can be set up online in only a few minutes and savings accounts applied for immediately, with no paperwork required. The hub contains a filtering tool and calculator so customers can evaluate the fixed-term and notice accounts available before investing.
Once opened, the savings accounts can be viewed alongside each other and alongside any investments held in other accounts with AJ Bell.
*Annual Equivalent Rate – helps to compare the interest or profit earnt in a year in different savings accounts