Ulster Bank’s latest release of their eSavings instant access account has made a firm statement to the savings market in the UK – to be market leading. Whilst RCI Bank has long been at the forefront of instant access rates with their popular Freedom Savings Account, Ulster Bank looks set to give them a run for their money, so here we take a closer look at what this simple and yet highly competitive account has to offer.
Market leading rate: 1.25% AER Variable
The most impressive feature of the account is the rate. Ulster Bank’s eSavings account is currently offering 1.25% AER variable gross, which is market leading for an instant access account in the UK.
Earning you more
According to the Bank of England*, the average instant access account is currently paying only 0.15%, and so there are hundreds of thousands of savers out there who could benefit from the rate currently on offer from the eSavings account. Assuming a balance of £50,000, this account would pay £625 per year compared to just £75 from the average account – that’s an additional £550 per year.
One simple rate
Unlike other accounts, there are no bonus periods or tiered interest rates, just one simple market leading rate across all of your balance. Interest is calculated daily, and paid on the last business day of the month.
No minimum – start saving from just £1
There is no minimum deposit required to open the account, so you start saving from just £1. Although there is a maximum balance, this is set at £5m so should not affect many.
The eSavings account is an instant access savings account which means that you can withdraw money at any time and no notice is required. You can withdraw money by online transfer, via the mobile app or through telephone banking. There are daily withdrawal limits in place, which are currently £20,000 per working day for payments made via online banking, and £10,000 per working day via telephone banking. You are able to transfer more than your daily limit by sending your instruction in writing.
Managing your account
You can manage your account online through Anytime Internet Banking, by telephone banking or via the mobile app. You must register for the Anytime Internet Banking service to manage your account via online, telephone or on the mobile app.
Available to all
Provided you are aged 18 or over and a UK resident, this account is open to all savers, both new and existing customer of Ulster Bank.
Easy to apply
The account has to be opened online but only takes a few minutes to apply.
Financial Services Compensation Scheme
Ulster Bank Limited is part of the Royal Bank of Scotland group and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. As a UK regulated bank, it is also a member of the Financial Services Compensation Scheme (FSCS). The Scheme can pay compensation to customers if they are eligible and Ulster Bank Limited is unable to pay claims against it, for example if it ceases to trade or becomes insolvent. The scheme will cover up to £85,000 per person for money held on deposit. For further information about this protection you can read ‘How FSCS protects your money’ or you can visit the FSCS website.
* Bank of England average quoted household interest rates for instant access savings, 7th June 2017
AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Gross rate is the interest rate you are paid without the deduction of income tax. The account does not deduct tax from the interest paid. The tax treatment may be subject to change in the future and depends on your individual circumstances.