Bank increases interest rates across several accounts and ‘takes market-leading position’

Starting with just £50, the account is designed to appeal to savers with smaller amounts to invest, offering the certainty of a fixed interest rate over a set term.

Fixed-rate accounts are particularly appealing as they guarantee a specific return, but they often come with restrictions, including limited or no access to funds before the term ends.

Caitlyn Eastell, spokesperson for Moneyfactscompare.co.uk, commented on the deal: “This week, Atom Bank has increased the rates on several of its Fixed Savers, including the two-year option.

“The account takes the market-leading position when compared against bonds of the same term, paying 4.70 per cent on its anniversary.

“The deal may appeal to many savers looking for a guaranteed return and it can be opened with as little as £50.”

For savers who prefer regular income, Atom Bank’s account also offers a monthly interest option. However, Eastell warned that savers should ensure they are comfortable locking their money away for the full term.

She said: “It is important investors are comfortable with locking up their cash for the full term as earlier access is not permitted.

“But in more positive news, further additions can be made for a week from the account opening.”

Meanwhile, Birmingham Bank has also joined the top ranks, offering a slightly higher 4.71 per cent on its two-year fixed account, though this comes with a higher entry requirement of £5,000.

With a maximum investment of £250,000, this account also restricts withdrawals until maturity.

Close Brothers Savings rounds out the top three, matching Atom Bank’s rate of 4.7 per cent on its two-year fix, though savers must deposit at least £10,000 to get started.

The maximum investment in this account is £2 million, with interest paid annually and withdrawals not allowed before maturity.

With the Bank of England expected to announce a rate cut soon, savers are being urged to act fast and lock in the best deals while they are still available.

Eastell advised: “To avoid disappointment, savers would be wise to secure any enticing deals before they disappear. If consumers are unsure which account is best suited to their needs, they should seek independent advice in the first instance and carefully consider any opening restrictions.”

Savers looking to get the best return on their savings should act quickly to secure these market-leading offers before rates potentially drop further.