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Gatehouse Bank has announced another increase in interest rates across a range of its savings products. The financial institution has confirmed this is to help savers get the “best possible returns” from their accounts.
Notice Account rate increases
Gatehouse Bank’s largest rise in interest rates applies to one of its notice account savings products.
This particular savings account has no fixed term but has a notice period linked to it which must be adhered to before customers take money from their account.
Here is a breakdown of the changes to the bank’s range of notice accounts:
95-Day Notice Account
Old interest rate: 2.90 percent
New interest rate: 3.25 percent.
120-Day Notice Account
Old interest rate: three percent
New interest rate: 3.30 percent.
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Easy access accounts
The bank’s easy access savings and ISA offerings are now both giving customers the same interest rate.
Due to easy access, both accounts permit savers to make deposits and withdrawals at any time.
Both the Easy Access Account and Easy Access Cash ISA can be opened with a minimum deposit of £1.
Here is a breakdown of the changes to Gatehouse Bank’s easy access products:
Easy Access Account
Old interest rate: three percent
New interest rate: 3.05 percent.
Easy Access Cash ISA
Old interest rate: 2.90 percent
New interest rate: 3.05 percent.
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Fixed-term accounts
On top of these previous changes, Gatehouse Bank has also increased the interest rate of its fixed-term products.
Specifically, the affected accounts are the One-Year Woodland Saver Cash ISA and 18-month Woodland Saver Cash ISAs.
As these products are fixed-term, the interest rate is locked in over a specific period of time and cannot be changed.
Here is a breakdown of the changes to the rates of Gatehouse Bank’s fixed-term accounts:
One-Year Fixed Term Woodland Saver Cash ISA
Old interest rate: 3.80 percent
New interest rate: 3.95 percent.
18-Month Fixed Term Woodland Saver Cash ISA
Old interest rate: 3.95 percent
New interest rate: four percent.
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Ravi Kumar, a senior product manager at Gatehouse Bank, shared why the financial institution has opted to raise interest rates at this moment in time.
He explained: “As people continue to feel the pinch caused by the ongoing cost-of-living crisis, it’s more important than ever to help our customers achieve their financial goals by providing the best possible returns on their deposits.
“Today’s savings rates changes have been designed with this in mind.”
Interest rates have risen over the past year due to the Bank of England increasing the UK’s base rate to combat the impact of inflation on the economy.
As it stands, the base rate is at four percent and is expected to rise even further in the months ahead.
This is because the latest Consumer Price Index (CPI) rate of inflation for January 2023 is at 10.1 percent.
Concerns have been raised that the rising inflation rate is diminishing returns on peoples’ savings.
The central bank is set to make another announcement regarding the base rate on Thursday, March 23, 2023.
