The financial impact of the coronavirus pandemic has meant many are seeking ways in which they can make their money work harder for them. But, with this month marking one year since the Bank of England Base Rate was slashed to the record low of 0.1 percent – where it has been held ever since – savings interest rates have diminished.
When it comes to the market-leading interest rates, there is still a range of options out there though, in a variety of forms.
From regular savings accounts to ISAs, savers still have some choice when it comes to how they can make their money grow.
Some current accounts also offer an interest rate on balances, up to a certain amount.
An example of this is Nationwide, and Virgin Money has a similar type of offer.
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Nationwide Building Society’s FlexDirect is a free, online account.
The account pays two percent AER (1.98 percent gross p.a) on balances up to £1,500.
This interest rate is offered for the first 12 months only.
To earn this rate, the person will need to pay in £1,000 into the account each month.
This does not include deposits from other Nationwide accounts or Visa credits.
In the event the balance exceeds £1,500, customers should note interest on balances above this threshold is zero percent.
It means interest can be earned on the first £1,500 in the account, but not on any part of the balance over £1,500.
“If you’ve had a FlexDirect before, you won’t receive this offer again, unless your new FlexDirect account is in a different name or names,” the building society states.
“Plus, if you want to share another account with someone else, we’ll pay the two percent rate on the first joint account you open with them.”
Meanwhile, Virgin Money is offering a 2.02 percent AER (2.00 gross per annum variable) on balances up to £1,000.
The interest for this account is paid monthly.
No interest is paid on any part of the balance which is above the £1,000 threshold.