Savings rates at RCI Bank were increased this week, with three of its fixed accounts seeing rises. Today, the company added to this by increasing the rate on a fourth account.
On July 6, the provider announced an increase to its two, three and five year Fixed Term Accounts.
The two year fix increased to 0.70 percent, with the three year fix increased to 0.85 percent, and the five year increased to one percent.
Tafari Smith, the Head of Savings at RCI Bank, commented on the increases at the time.
Mr Smith said: “After a difficult year, we are pleased to be able to increase our interest rates on our two, three and five year Fixed Term Accounts.
“Since launching six years ago, we have been committed to offering competitive rates and simple products.
The company announced a rate increase for its 95-Day Notice Account to 0.52 percent AER gross variable, for new and existing customers.
All RCI Bank accounts can be opened by all UK residents aged 18 years and over.
The 95 Day Notice Account requires £1,000 minimum deposit and customers can choose to select either a monthly or annual interest rate.
The account offers saving flexibility for customers with unlimited deposits and withdrawals subject to 95-day’s advance notification.
RCI Bank noted that while its call centre is based in the UK and available seven days a week, accounts can also be managed online and via the RCI Bank app, giving customers the freedom to manage their own finances.
Mr Smith also commented on this update: “After a difficult year, we are pleased to be able to increase our interest rate on our 95 Day Notice Account, as well as our two, three and five year Fixed Term Accounts.
“Our recent research revealed that over two in five (43 percent) savers managed to put aside £174 more per month during the pandemic.
“We hope these increases will encourage more savers to look longer term in regards to their financial planning and boosting their nest eggs.”
Savers will want to take advantage of these increases where they can with Rachel Springall, a Finance Expert at Moneyfacts.co.uk, recently warning many are ill prepared financially.
As Ms Springall detailed: “Building a savings pot for the future is a vital way to avoid short-term credit and instil a positive habit. In a low interest environment, it would not be too surprising to find savers apathetic to open an account or chase down a better savings rate, but it’s important that they shake off this attitude and instead seriously consider how they will afford to cover unexpected purchases or a sudden increase in their monthly expenses, such as the cost of the festive season.
“Consumers may have amassed extra disposable income through the UK lockdown but whether this savings behaviour will last over the months ahead is unknown and on the other hand there could be savers who have very little tucked away. Indeed, recent research from Yorkshire Building Society revealed that more than a quarter of consumers had less than £500 saved and one in ten had no savings at all. If someone were to put away just £25 a week for the next twenty weeks, they would amass £500 and still have enough time to do their Christmas shopping.
“Those on a low income could open a Help to Save account, which is an initiative from the Government designed to encourage working people on Tax Credits to save. The scheme pays 50p per £1 saved up to a maximum bonus of £1,200 over four years. HMRC statistics indicated that more accounts have been opened and deposits rose, which is positive to see, but as part of the same research, thousands of accounts were opened but no deposits were made. The financially unstable would be wise to work out their overall household expenditure and where they can cut back and save. There are simple ways to start budgeting, for example by using a free mobile app like Money Dashboard.”