FirstSave is the latest bank to hike the rate on its one-year fixed-rate savings account following 13 consecutive Bank of England interest rate raises.
The high-street lender is now offering savers 6.1% on its savings account, in line with rates offered by NatWest and Royal Bank of Scotland, but behind first direct, which offers its savers 7%, and Lloyds, 6.25%.
“Now paying a rate of 6.1%, the deal sits comfortably against its peers and may entice savers looking for guaranteed return over the next year if they have a minimum of £1,000 to invest,” said Rachel Springall, personal finance expert at Moneyfactscompare.co.uk.
Banks across the board have been raising their own savings rates after the BoE raised its base rate to 5% on 22 June 2023.
Despite some of the high saving rates offered by a handful of banks, interest offerings have often lagged the base rate.
According to Moneyfacts, average easy-saver account rates currently sit 4.02% lower than the UK’s typical two-year fixed rate mortgage, at just 2.45% compared to 6.47%