Bank accounts are important to those who are putting money away towards specific goals, or those who simply want some monetary insurance. Having at least three to six months in emergency savings is generally considered the best approach, but many will wish to get a return on their savings as well. News of lower interest rates since March 2020 has left many savers feeling disheartened as they have little place to turn to grow their funds.
However, a new offering is likely to pique the interest of many, as experts have described it as a ‘competitive option’.
Gatehouse Bank, which provides ethical savings, has today launched its Green Saver Accounts with attractive offerings.
The Green Saver Accounts are likely to be of interest to those who are looking for a solid return, while simultaneously helping the environment.
The bank has pledged to plant a tree for every fixed term deposit account opened, improving sustainability and the planet.
For a three year fixed term deposit, the rate is set at 1.25 percent, but increases again to 1.50 percent for an account fixed for five years.
ISA rates offered by Gatehouse Bank are similarly favourable in the current climate.
A one year fix cash ISA offers 0.45 percent, with a two year fix set at 0.80 percent.
Rates climb to 0.90 percent for a three year fix, and 1.30 percent for a five year fixed term.
Rachel Springall, finance expert at Moneyfacts, commented on the matter.
She said: “This new initiative from Gatehouse Bank is a great way for savers to not only invest with an ethical brand, but also make a difference to the environment and fight back against climate change.
“Not only will a tree be planted for every account opened, but savers can receive an attractive return on their pot.
“The fixed rates are competitive in the current market, with the two and three-year fixed deals sitting just shy of the market-leading deals from Al Rayan Bank.
“The one-year bond is competitive but can beaten, however, the five-year fixed bond leads the market at 1.50 percent.”
But many savers will also wish to use their ISA allowance, and the fixed returns could also be enticing.
While Ms Springall acknowledged the one-year fix may be beaten out, the two, three and five-year offerings currently lead their respective sectors.
She concluded: “Savers who are unsure whether to invest with an unfamiliar brand would be pleased to know that Gatehouse Bank has the same protections in place as the high-street banks, as they are covered by the Financial Services Compensation Scheme (FSCS).
“As an Islamic bank, any returns will be paid as an expected profit rate, not interest.”
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