Barclays Instant Access Savings Account offers 5.12% for savers | Personal Finance | finance

Blue Reward customers can get a floating rate of 5.12 per cent on balances up to £5,000. Savers can open the account with a deposit of £1 and set up a standing order to gradually increase their savings pot.

Customers should note that the interest rate on balances over the £5,000 limit drops to 0.15 per cent.

A person who deposited £1,000 into the account would see the balance grow to £1,051.16 after 12 months.

If a saver invests £5,000 in their Rainy Day Saver, after one year the amount would grow to £5,250.17.

The Rainy Day Saver Account is the latest exclusive benefit available to Barclays Blue Rewards members

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The Blue Rewards program is a program designed to reward customers by giving them cash rewards every month.

Customers receive more rewards for having or opening other accounts or services with the bank.

Other existing benefits include monthly cash rewards on products such as mortgages, insurance and credit, and access to the Blue Rewards Saver account.

David Kelly, Head of Savings at Barclays, said: “Customers are looking for ways to build their savings and the Barclays Rainy Day Saver helps them set up an emergency fund with instant access and a base rate for balances of up to £5,000.

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“The Barclays Blue Rewards program is designed to help people make their money work harder with access to exclusive savings products.

“It sits alongside Barclays’ highly competitive fixed income and ISA options, which are available to all and help customers save more.”

The Rainy Day Saver comes with a monthly membership fee of £5 and savers are also required to deposit at least £800 per month.

The account can be managed via app, online banking, phone or when visiting a Barclays branch.

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Analysts have predicted interest rates could reach 6% in the coming months, with the Bank of England’s benchmark rate currently standing at 2.25%.

The central bank has raised interest rates several times over the past few months to counter rising inflation, which is expected to continue to rise.

The Bank of England is expected to add another 75 basis points to borrowing costs at its November 3 meeting.

Analysts at Goldman Sachs said: “We are not yet convinced that the BoE will be able – or will – to react to interest rates vigorously enough to support the currency in the short term.”

A new report from Moneyfacts.co.uk showed that the average five-year fixed-rate mortgage on the market has hit six percent for the first time in 12 years.

The typical five-year fixed-rate mortgage was 6.02 percent Thursday after skyrocketing from 5.97 percent last Wednesday.

Most recently, the average five-year fixed-rate mortgage was six percent in February 2010, when the rate was six percent.

The average two-year fixed-rate mortgage is 6.11 percent and on Wednesday exceeded the six percent mark for the first time since November 2008.

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