Best Buying Savings: Gatehouse Bank Offers 1.51% Fix for One Year

A new Best Buy savings account launched this week, offering the highest short-term fixed yield in nearly a year and a half.

Gatehouse Bank launched its Green Saver account paying 1.51 percent. This is the first time that rates have exceeded 1.5% for 12-month money lock-in since May 2020.

The challenger bank adds that for every account opened, a tree will be planted in UK forests, a move that seeks to capitalize on how some Britons are preparing to go green in their finances.

The account can be opened with £ 1000 but only online. Importantly, Gatehouse is part of the Financial Services Compensation Scheme which protects savers up to £ 85,000.

The London-based bank is Sharia-compliant, which means it cannot offer customers an interest guarantee. Instead, it delivers an expected rate of profit from the accounts.

These types of accounts have become more common and often appear in Best Buy charts independently compiled by This is Money.

Another example that savers may be familiar with is Al Rayan Bank – the bank that was knocked down from our top spot in the charts.

Ultimately, an exact return on these accounts is not necessarily guaranteed.

“Strong supporters of Sharia finance accept that banks do not provide a 2% return, they could get 1.8% or 2.2%,” Charles Haresnape, CEO of Gatehouse Bank, previously told us.

But that usually doesn’t happen.

“We are doing everything we can to provide a quoted return,” added Haresnape, “and we have never paid the quoted rate, we manage it very closely on a day-to-day basis so that we can make that commitment.”

You can read more about Sharia Complaint Banks here: Sharia Banks Dominate the Best Buy Fixed Rate Savings Tables: How Do They Work?

Gatehouse also offers a better rate of 1.6% fixed over 18 months and 1.75% over two years, 0.01 percentage point lower than the top of the table. Al rayan.

The highest rate it offers is 1.86% over five years.

This can only be beaten by a new challenger Recognize the bank which launched last week with an exceptional 2% rate as deals continue to improve.

Somewhere else, Allica Bank increased its one-year fix to 1.4% to take third place in our best buy charts and its two-year fix to 1.75 percent to take second place with Gatehouse, as the challengers continue to rise. ‘help stimulate the market.

No rate currently offered by a traditional savings provider with FSCS protection can currently come close to inflation, which was recorded at 3.2% for August.

Moneyfacts research last week showed that one-year rates and longer-term fixed rates have increased in recent weeks.

However, the average hold period of a fixed rate bond has fallen to 33 days on average, from 53 days a month ago, suggesting that trades are not as long.

Rachel Springall of Moneyfacts adds: “Savings providers will need to act quickly to respond to the noticeable flow of rate hikes in the market and indeed any demands from savers looking to secure their money for a competitive return. ‘

How to find the best savings rates

Savings rates have been in the doldrums for many years, but the situation has been significantly worsened by the pandemic and the emergency base rate reduced to 0.1%.

But there are ways to make sure your money is at least in the best of the bunch at all times.

Consulting the best rates is essential, but it is also possible to simplify your life overall and manage your funds in one place.

Over the past few years, a number of savings platforms have been launched, giving savers the flexibility to switch as better deals become available and to manage the accounts of different banks and building societies.

They each operate slightly differently and include their own exclusives. To find out what’s on offer, take a look for yourself:

> Grape

> Hargreaves Lansdown Active Savings

> Slab

Or you can check out This is Money’s Best Buys savings charts here, independently curated by savings guru Sylvia Morris:

> Compare the best savings rates now