By choosing a little-known ‘double access’ account, savers can now earn up to 4 percent in interest.
As long as you make no more than one or two withdrawals per year, these types of savings accounts pay a fixed interest rate.
It means you can access your savings while still earning a comparable rate of return to accounts that bind up your funds and impose fees for withdrawals.
Today, West Bromwich BS increased the interest rate on its Double Access account from 3.85% to 4%.
You can establish the account by mail or in person at a branch. If more than two withdrawals are made, the rate decreases to 2.2%.
This rate is in effect until August of next year. Tomorrow, HSBC will increase its Online Bonus Saver interest rate.
Interest of up to £400 per year is accrued on balances of up to £10,000 at a rate of 4% per annum.
However, this rate is only earned if no withdrawals are made from the account for 12 months.
Secure Trust Bank offers a 3.85% online account with unlimited withdrawals.
