MoneySavings and Investments

Exploring Lesser-Known UK Banks Offering Competitive Savings Rates

The UK banking landscape is filled with institutions beyond the typical high street names. Many of these lesser-known banks have garnered a reputation for offering attractive savings rates, making them compelling choices for savvy savers looking to maximise their returns.

Atom Bank Atom Bank, established in 2014, claims to be the UK’s first app-based bank. Without the overheads of physical branches, Atom has frequently offered competitive rates on its fixed saver accounts. Atom’s platform is designed for the digital age, making account management, from setup to withdrawal, a streamlined process.

Paragon With its roots in the 1980s, Paragon has grown from a specialist buy-to-let mortgage provider to a diverse banking institution. Their savings offerings include easy access, fixed term, and notice accounts, often with rates that compete well in the market. Their online banking system is straightforward, enabling customers to manage their savings without fuss.

OakNorth Bank OakNorth Bank is relatively young, having been founded in 2015. Yet, it has rapidly grown its customer base, in part due to its competitive savings rates. Offering fixed term deposits, the bank aims to combine personalised service with modern technology.

Oxbury Oxbury stands out as the UK’s only specialist agricultural bank, serving British farmers with tailored financial solutions. While their primary focus is on the farming community, they also offer savings products to the broader public. Their savings often providing competitive returns for those willing to commit funds for longer periods.

Tandem Tandem Bank has evolved over time, pivoting from credit cards to broader financial services. Among their offerings are fixed savers, which have been known to offer interest rates that stand out in the crowded UK banking market. Additionally, Tandem has shown a keen interest in promoting eco-friendly financial solutions, including green mortgages.

Cynergy Cynergy Bank, formerly known as Bank of Cyprus UK, underwent a rebranding in 2018. While its roots are in business banking, its savings products for individuals shouldn’t be overlooked. They offer a range of accounts, from easy access to fixed term deposits, often with competitive rates.

Whether you’re a tech-savvy saver looking for app-based banking, someone with an eco-conscious bent, or just seeking the best returns on your hard-earned money, these banks can offer unique propositions worth considering.

Diversifying your savings across different banks, especially those that might not be household names, can yield better returns. However, always ensure you’ve done thorough research and understand the terms and conditions before committing your money.

Government Deposit and Savings Guarantee Scheemes

Several countries offer Deposit and Savings Guarantee Schemes.

It is important to check if savings are protected. 

The Financial Services Compensation Scheme (FSCS) stands as the deposit guarantee scheme in the United Kingdom,

At its current level, the FSCS guarantees a sum of up to £85,000

There are similar schemes in other countries.


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