Atom Bank launches new savings account | Personal Finance | Finance

Atom Bank has launched a new easy access savings account paying a “competitive” 4.85 percent interest rate.

The app-only bank’s new Instant Saver Reward deal encourages customers to save by providing a higher ‘Reward’ rate when no withdrawals are made in a month.

However, recognising that some customers will need the flexibility to access their money, the lower withdrawal rate still offers savers almost double the average high street bank easy access rate at 3.25 percent.

Mark Mullen, chief executive of Atom Bank, commented: “Loyalty to your bank can be bad for your financial health. All too often, high street banks offer products that are designed to pay customers as little as possible. Millions of accounts that pay less than two percent aren’t even keeping pace with inflation. They’re the banking equivalent of zombies.

“Our new Instant Saver Reward is a zombie killer. Switch to Atom and bring your money back to life.”

There is no limit to withdrawals with the Instant Saver Reward product, and the interest rate resets every month to ensure customers’ money “keeps working harder for them”.

Up to £100,000 can be invested in the account overall and interest is paid monthly.

Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s exciting to see a new easy access account launched for consumers that offers flexibility and rewards savers with a competitive return on their cash.

“The Instant Saver Reward from Atom Bank sits highly in the top rate tables and may be an attractive choice for savers who don’t want to lock their money away for too long.

“It’s positive to see Atom Bank recognise the needs of savers to access their pots. Unlike other easy access accounts, the rate reduction for making a withdrawal will reset the following month, plus, there is no limit to the number of withdrawals someone may need to make throughout the year.

“Saving little and often is the key to building up a decent nest egg over time, and keeping track of a rising pot and the subsequent interest earned can motivate the savings habit.”