Starling Bank has launched a market-leading easy-access savings account which pays an interest rate of 5%.
The account is available for new customers, and you can make unlimited withdrawals without incurring a penalty.
What does Starling’s easy-access saver offer?
Starling’s Easy Saver is paying new customers 5% on balances of up to £25,000.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
The account has a fixed bonus of 2.5% for six months, on top of an underlying standard variable rate of 2.5%.
Latest Videos FromMoneyWeek
While you can save up to £1 million in this account, the top rate is only payable on balances of up to £25,000. The rate will drop to 2.5% on any balances above this threshold.
Customers will need to open a Starling current account to apply for the easy-access saver. You can make unlimited penalty-free withdrawals with this account, and interest is accrued daily and paid monthly.
Starling is a digital bank, which means the account may not be right for you if you prefer to do your banking at a branch.
This 5% offer is only for new customers – loyal customers are offered a lower 4% rate, including a 1.5% fixed rate bonus for six months.
Is Starling’s easy-access saver a best-buy?
Starling’s 5% saver pays the most on the market as of 1 October, making it the top easy-access savings account in terms of interest rate. Starling has also been voted one of the UK’s best banks.
However, there are a few caveats to keep in mind when considering the savings account.
Jessica Sheldon, MoneyWeek's deputy digital editor, said: “Starling's 5% easy access savings account looks attractive but it includes a 2.5% bonus rate for six months, so you might want to check if you can get a more competitive rate elsewhere in half a year's time. Plus, the underlying rate is variable, meaning it could change at any time.”
Customers can close their Starling Easy Saver without incurring a penalty, so once the bonus period comes to an end, you might want to review your options to find a better savings account.
The next best account is Zopa’s Limited Access pot, which pays 4.56% and has a fixed rate of 1.05% for 12 months, followed by Cynergy Bank’s 4.55% saver, which includes a 2% fixed bonus for 12 months.
Alternatively, if you wish to fix your savings, you could earn up to 5.12% with AlRayan Bank if you lock away your cash for a year.
