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Barclays increases savings rate as banks criticised for short-changing savers

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Barclays increases savings rate as banks criticised for short-changing savers

The average one-year fixed rate bond on offer on Monday was 5.27pc, up from 5.26pc on Friday, and the average one-year fixed cash Isa was 5.09pc, according to financial analysts Moneyfacts.  

The top one-year fixed-rate account currently on the market is 6.04pc with Cynergy bank, while Tesco Bank is offering 5.85pc on deposits of up to £5m.

Two-year fixes are currently offering up to 6.1pc on up to £85,000 with Recognise Bank or 5.75pc at Tesco Bank on up to £5m. 

None of the top one or two-year fixed rates available can be opened in person, requiring savers to apply online or over the phone. 

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Longer term fixes are currently hovering just below 6pc as market volatility restricts the willingness of lenders to promise high rates for several years. 

Tandem Bank is offering the best easy-access rate on the market and is the only lender to hit 5pc through its “boosted” account, which can only be opened through an app and requires savers to hold another account with the bank.

Rachel Springall, of Moneyfacts, said: “It’s good to see some positive rate increases from such a prominent brand, but as both the fixed bond and Isa market remain competitive, better rates can be found elsewhere. 

“It is imperative that savers check the top rate tables to ensure they are getting the best possible return on their hard-earned cash.”

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Barclays was criticised last week for changing the overdraft limits of its customers, regardless of how much money they have or how much they earn. 

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