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Barclays is offering savers a ‘market leading’ rate of 5.12 percent but there may be a catch | Personal Finance | Finance

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Rates of interest on savings accounts have been increasing for the reason that Bank of England (BoE) upped the bottom rate from 1.75 to 2.25 percent in September. The bank is about to announce the subsequent increase on November 3, which could drive rates of interest on savings accounts up even further.  Barclay’s Rainy Day Saver pays the highest rate of 5.12 percent AER on balances as much as £5,000. 

Nonetheless, anything above this, the rate of interest drops to 0.15 percent.

People can open an account with only one pound and may arrange a standing order to assist them grow their savings pot.

Barclays states that Britons who deposit £1,000 into the account would see the balance grow to £1,051.16 after 12 months.

If a saver invested £5,000 of their Rainy Day Saver, the quantity would grow to £5,250.17 after a 12 months.

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Barclays stated that interest on the accounts is calculated each day using the statement balance and is paid monthly on the primary working day of every month.

The utmost the account can hold is £10million. 

Because it is a variable account, Barclays can increase and reduce the rate of interest. 

The account also allows withdrawals so people won’t face any penalty for accessing their money. 

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The catch on the account, nevertheless, is it is simply available to Barclay’s current account holders who’re signed up for its Blue Rewards scheme. 

People must even be over the age of 18 years and a resident of the UK. 

The Blue Rewards scheme is an optional current account add-on, which costs savers £5 a month.

Nonetheless, people can get £5 back in the event that they arrange two or more direct debits from their nominated account. 

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People may also have to make certain at the very least £800 is paid into the account every month. 

People also get access to 2 savings accounts: the Blue Rewards Saver, which pays 1.26 percent AER in any month where an individual doesn’t make any withdrawals, and the brand new Rainy Day Saver. 

Other existing advantages as a part of the scheme include monthly money rewards on products reminiscent of mortgages, insurance and loans in addition to access to the Blue Rewards Saver account.

People could get £3 a month in the event that they have or take out a private residential mortgage with the bank and may get £1 a month in the event that they take out a private loan.

 

Life insurance can pay £1.50, or £5 if the insurance includes critical illness cover, and other people may also receive three percent cashback in the event that they take out home insurance.

Barclays says when people earn money rewards from the Blue Rewards scheme, it is going to pay the cash into an individual’s rewards wallet.

All these accounts might be managed using the Barclays app, online banking, over the phone or by visiting a Barclays branch.

The account was highlighted by MoneySavingExpert.com as the most effective easy-access accounts to go for at the present moment.

It did note that individuals would want to “jump through some hoops” to get it.

 

 

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