Should you try a new savings star this spring?
AHUGE 30 new names have appeared in the savings best buy tables over the past decade — and insiders say as many as 40 more are on their way.
The newcomers have pushed out old stalwarts such as Lloyds, Halifax, NatWest, Barclays, HSBC, RBS and Santander.
It means that if you are looking to move your savings to a new home this spring or use up your Isa allowance before the tax year ends, you could find that many of the best deals are with names you have never heard of.
Providers paying top interest rates on fixed-rate bonds, for example, now include Aldermore, Atom, Tandem, Masthaven, Ikano, Paragon, Secure Trust, PCF, Hampshire Trust, Wyelands and Vanquis Savings.
Meanwhile, Goldman Sachs’s Marcus, RCI Bank, Cynergy, Paragon and Ford Money offer the best deals on easyaccess accounts.
With these new banks you are protected as usual in the unlikely event they go bust. Under the Financial Services Compensation Scheme (FSCS) you are covered for up to £85,000 (£170,000 on joint accounts).
With French-owned RCI Bank and Swedish bank Ikano you are covered under their home country’s schemes rather than the UK one.
The French scheme will protect up to €100,000 (just under £87,000 at current rates) of savings, and the Swedish scheme protects up to £85,000.
Experts say that these new banks want savers’ money to fund their UK lending business, be it mortgages for individuals, small business loans or car finance deals.
Here we give you the run-down on six new banks that stand out on rates and service.
ARBUTHNOT DIRECT
LAUNCHED just last week, Arbuthnot Direct now offers a range of top fixed-rate bonds. It is not a new bank, but part of the well- established Arbuthnot Latham, which has offices in London and Manchester.
It follows in the footsteps of global giant Goldman Sachs, which launched its Marcus label last September.
Arbuthnot Direct’s best deals include a three-year fixed-rate bond at 2.4 pc and a five-year bond at 2.5 pc. Accounts are available on its website ( arbuthnotdirect.co.uk). You can also call its telphone helpline 0330 058 5510 with any queries.
MARCUS
LONDON-BASED Marcus by Goldman Sachs offers just one online savings account.
It pays a rate of 1.5 pc, which has remained unbeaten since its launch in September. The rate includes a 0.15 percentage point bonus payable for the first year you are in the account. You can renew this at the end of the year. To open an account visit
marcus. co. uk — there is a telephone helpline (0800 085 6789) if you need to talk to a representative.
So far the account has attracted more than £5 billion from 200,000 savers.
The account does not appear in Money Mail’s best buy tables because we do not feature savings deals which include short-term bonuses. However, we keep you informed when these accounts look attractive.
OAKNORTH BANK
THIS bank has made several appearances in the best buy tables in recent weeks.
Based in Soho, London, the bank has attracted £1.2 billion from more than 34,000 savers since its launch in 2015.
It offers cash Isas as well as fixed-rate bonds. Last week it launched a top- paying easyaccess cash Isa at 1.44 pc and a one- year fixed- rate cash Isa paying a market-leading 1.74 pc. Its fixed-rate bonds are also consistently among the very best deals.
Its accounts are only available online ( oaknorth.com) but it does have a telephone helpline (0330 380 1181) for customer queries.
CYNERGY BANK
PREVIOUSLY known as Bank of Cyprus UK, the savings provider has been known as Cynergy Bank since it was sold to Cynergy Capital Limited in December.
It’s based in London and its accounts are online ( cynergy
bank. co. uk) — its telephone helpline is 0345 850 5555.
It continues to be run by chief executive Nick Fahy, who has been in his position since 2015 and has more than 20 years’ experience in banking.
Since the new name appeared, Cynergy has paid top rates such as 1.5 pc on its easy- access account, including a 0.5 percentage point bonus for a year, and 1.73 pc on its one-year fixed-rate cash Isa.
SHAWBROOK BANK
SHAWBROOK has been around for eight years and offers a wide range of products including fixed-rate bonds, Isas and easyaccess accounts.
It currently pays 1.43 pc on both its easy-access ordinary and cash Isa accounts and 1.74 pc on its one-year fixed-rate cash Isa.
More than 100,000 savers hold £ 5 billion with the bank. It’s based in Brentwood, Essex, and offers its accounts online ( shawbrook.co.uk) with a phone helpline (0345 266 6611).
CHARTER SAVINGS BANK
SET up in 2015, Charter Savings Bank is based in the Midlands and has brought in £4.3 billion from more than 100,000 savers.
Unusually for a new bank, it offers its fixed- rate bonds through the post as well as online. It introduced the service three months ago and is proving popular with savers.
The bank offers an easy-access account — both an ordinary and a cash Isa version — at 1.31 pc and is consistently among the top payers on fixed-rate bonds. Its one- year bond currently pays 1.9 pc and its one- year ixed-rate cash Isa 1.67 pc. Visit
charter savingsbank.co.uk or call 0800 032 9999. sy.morris@dailymail.co.uk