30th October 2014
Challenger banks Aldermore and Julian Hodge are hoping to pull more customers away from the old guard with the launch of two new savings vehicles.
Aldermore has increased its three-year fixed rate bond, which now pays 2.35% yearly or 2.33% monthly.
Savers must invest from £1,000 up to a maximum of £1m. Additions and early access are not permitted and the deal is for savers aged 18 and over and can be operated by post, online and by telephone.
For its part Julian Hodge Bank has introduced a new 90-day notice account, paying 1.55% yearly or 1.54% monthly at £10,000. Savers can invest from £1,000 – although the interest rate is significantly reduced – up to a maximum of £1m. Further additions are permitted and early access to funds, as the name suggests, is allowed only subject to 90 days’ notice. This deal is operated by post only.
Financial analyst Moneyfacts has given both offers the thumbs up. Charlotte Nelson of the firm said: “Aldermore is highly competitive and sits within the top five of the market. This is a great product for savers looking to maximise their interest in a fixed rate bond. However, savers need to bear in mind that they will not be able to access funds during the term, so they will need to be comfortable with their initial investment.”
In regards to the Julian Hodge Bank offer, she highlighted that it now one of the top deals in the market, within its sector. Nelson added: “This account is a great option for those looking to supplement their income. It must be noted that early access to funds is always subject to the 90-day notice period.”