One of the latest financial institutions to do so is Recognize Bank, which raised interest rates this week. It comes after the Bank of England raised the country’s base rate to 2.25% in a bid to fight inflation. Following the move, banks and building societies passed on the rate hike to their customers’ savings accounts, with Recognize Bank following suit.
The bank confirmed an increase in interest rates on its 35-day notice and 95-day notice personal savings accounts.
As a result of this decision, the 35-day notice account now pays savers a rate of 1.25% AER.
Additionally, Recognize Bank has increased the notice account to 95 days and is now paying people an interest rate of 2.20% AER.
All of the bank’s personal savings accounts have been created to be easy to use, open and manage online.
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This includes access to customer support by phone to answer any potential customer questions.
Each account is also protected by the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000.
Dean Carter, Group Treasurer of Recognize Bank, explained why the financial institution chooses to help savers in the current climate.
Mr Carter explained: “It’s an uncertain world right now with economic upheaval and spiraling costs, so we want savers to know they can rely on Recognize Bank.
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“We offer consistently great rates, product choice, the ease and convenience of saving online, and peace of mind that their money is safe with FSCS protection.”
The bank also raised the interest rate on its Business Easy savings account following intervention by the Bank of England.
As of this week, this particular savings account now pays Recognize customers a rate of 2% AER.
It has been one of the banks’ most popular products and provides “quick access” to money, according to Mr Carter.
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He added: “Our Business Easy Access Savings Account is a great way for SMEs to help build a cushion against the impact of cash flow problems, or simply to earn interest on the money they have set aside for future bills and payments.
“It offers a decent rate when they don’t need their savings and quick access to their money when they need it.
“This is a difficult time for many SMEs. We know that inflation is impacting their own expenses and energy costs, and that the cost of living crisis is hurting the wider economy, with a ripple effect on customer footfall and sales.
“At Recognize, we want to do our part by giving them certainty about their business savings.”
In reaction to the rise in the base rate, experts explained how savers could be affected in the coming months.
Alice Haine, personal finance analyst at Bestinvest, said: “The only good news this week has been the rapid improvement in savings rates, which are now rising at the fastest pace since the cycle of interest rate hikes began. interest at the end of the last year.
“With the best easy access accounts now topping the 2% mark and fixed rate accounts – where money is locked in for a fixed period – hitting 4.32%, savers can finally get a decent return on their nest egg. .
“But with interest rates constantly rising, it’s imperative to make your savings work as hard as possible, so switch accounts if your provider isn’t providing a competitive return.”