Thanks to its new 3.25 per cent interest rate saver, Derbyshire Building Society has topped the instant access savings accounts best buy tables, eclipsing Nottingham BS, the former front-runner.
The new instant access saver from the personal and business bank account provider is the most lucrative return currently available since January of last year, according to industry experts. At that time, Coventry Building Society was offering a 3.3 per cent instant access saver.
Both customers new to Derbyshire and those who already have a NetSaver account through the building society will benefit from the rate increase, which is a 0.07 percentage point improvement over the previous 3.18 per cent rate on the account. The new changes go into effect today, marking the second time the Nationwide-owned mutual has raised rates in the month of September.
The recent rate increases have been an attempt to keep the savings product competitive within the marketplace, savings experts say, as mutuals have been driving savings activity in an effort to finance their mortgage books. The next-highest savers come from Nottingham BS, with a 3.20 per cent offering, and West Bromwich with its 3.17 per cent saver.
The Derbyshire offering, unlike some of its competitors, is a legitimate instant access saver, as the minimum balance to open the account is but £1 and there are no penalties or limitations on withdrawals of any kind. However, 2.25 percentage points of its best buy rate is comprised of a bonus rate, which drops off the account in November of next year and leaving account holders with a relatively low 1 per cent interest rate.