Starling Bank has launched a market-leading easy-access savings account which pays an interest rate of 5%.
The account is available for new customers, and you can make unlimited withdrawals without incurring a penalty.
What does Starling’s easy-access saver offer?
Starling’s Easy Saver is paying new customers 5% on balances of up to £25,000.
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The account has a fixed bonus of 2.5% for six months, on top of an underlying standard variable rate of 2.5%.
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While you can save up to £1 million in this account, the top rate is only payable on balances of up to £25,000. The rate will drop to 2.5% on any balances above this threshold.
Customers will need to open a Starling current account to apply for the easy-access saver. You can make unlimited penalty-free withdrawals with this account, and interest is accrued daily and paid monthly.
Starling is a digital bank, which means the account may not be right for you if you prefer to do your banking at a branch.
This 5% offer is only for new customers – loyal customers are offered a lower 4% rate, including a 1.5% fixed rate bonus for six months.
Is Starling’s easy-access saver a best-buy?
Starling’s 5% saver pays the most on the market as of 1 October, making it the top easy-access savings account in terms of interest rate. Starling has also been voted one of the UK’s best banks.
However, there are a few caveats to keep in mind when considering the savings account.
Jessica Sheldon, MoneyWeek’s deputy digital editor, said: “Starling’s 5% easy access savings account looks attractive but it includes a 2.5% bonus rate for six months, so you might want to check if you can get a more competitive rate elsewhere in half a year’s time. Plus, the underlying rate is variable, meaning it could change at any time.”
Customers can close their Starling Easy Saver without incurring a penalty, so once the bonus period comes to an end, you might want to review your options to find a better savings account.
The next best account is Zopa’s Limited Access pot, which pays 4.56% and has a fixed rate of 1.05% for 12 months, followed by Cynergy Bank’s 4.55% saver, which includes a 2% fixed bonus for 12 months.
Alternatively, if you wish to fix your savings, you could earn up to 5.12% with AlRayan Bank if you lock away your cash for a year.
