Starling Bank boosts its 1-year Fixed Saver to 5.25%
Starling Bank has increased the interest on its 1-year Fixed Saver account by 2% to 5.25%.
Starling Bank has upped the interest rate on its 1-year Fixed Saver from 3.25% AER to 5.25% AER – matching the Bank of England base rate.
Starling Bank’s 1-Year Fixed Saver
Less than a year after its launch, Starling’s 1-year Fixed Saver now stands at 5.25% after receiving a whopping 2% boost. Recent changes to the base rate and growing competition amongst providers have meant Starling has upped the rate on the account. It’s now one of the more generous 1-year fixed rate bonds available, beating the likes of HSBC and first direct (among others).
The account can be set up within the ‘Spaces’ section of Starling’s app. If you’re a Starling customer, funds can be transferred immediately from your main account into the 1-year Fixed Saver. You also have the option of setting up multiple 1-year Fixed Savers at once.
However, it’s important to remember with this type of account that you won’t be able to access your money for a whole year.
The 5.25% interest will be paid at the end of the 12 months and your deposit will be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Who can apply?
If you wish to open a 1-year Fixed Saver, you must already have a Starling current account. Currently, the account is subject to eligibility.
The minimum deposit is £2,000 and you can hold up to £1,000,000 across multiple Fixed Saver ‘spaces’.
The 5.25% AER only applies to Fixed Savers opened after 3 August 2023.
How does this offer compare?
Fixed rate accounts usually offer higher interest rates than easy access accounts. The longer you can afford to lock your money away, the higher the interest rate is likely to be. Plus, you know exactly how much interest you’ll have earned when the term ends.
Starling’s new rate matches the base rate set by the Bank of England, which many other providers are yet to do. This makes it a competitive option if you can afford to lock your savings away for 12 months.
If you’re looking to open a savings account and need an extra helping hand, use our comparison guide to compare 1-year savings bonds.