Derbyshire BS boosts instant access saver interest rate

One provider of personal and business bank accounts has recently raised the interest rate on its instant access saver to a new high of 3.18 per cent.

The new rate, which is available to both new and existing customers of Derbyshire Building Society’s NetSaver account, went into effect from September 12.  The NetSaver had recently fallen behind Bromwich BS’s instant access savings account, which had eclipsed its old rate by 0.06 percentage points.  However, Derbyshire, which is owned by Nationwide, has pulled itself up by its own bootstraps to regain the top spot by 0.01 percentage points.

Launched on July 25, the Derbyshire NetSaver’s new interest rate will be applied to both new customers and those who have an existing account with the building society.  The account requires only £1 to open, and there are no limitations on the number of deposits and withdrawals a saver can make to and from the account.

Unfortunately, a full 2.18 percentage points of the Derbyshire’s top rate is a bonus rate.  With the rate only lasting until November of next year, savers in search of the best returns will face the necessity of transferring their cash to a more competitive account.

The new Derbyshire saver differs from many of the building society’s other accounts, as it was developed for ease of use in managing money over the internet.  Savers paying the basic tax rate will net a 2.54 per cent return on their investment, whilst those paying the higher tax rate will receive a 1.91 per cent return.

However, with the inflation rate for the country well over 4 per cent, the yearly interest accrued by the saver will result in a net loss unless the Bank of England’s Monetary Policy Committee raises the base rate, industry experts said.

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