Competition has begun to heat up again as personal and business bank account providers launch new savings accounts designed to draw more customers.
Both Yorkshire and Clydesdale Banks both announced the launch of new fixed rate ISAs with a two year term, carrying an interest rate of 4 per cent. Savers wishing to open the account need to make a minimum deposit of £2,000, and savers are not permitted to make part withdrawals, with those closing their account early stand to lose at least £30 in interest.
Clydesdale Bank’s retail director, Steve Reid, stated that the intention behind the new offering was to support Brits in saving for the future. The bank was keen to highlight its dedication to supporting its customers, especially since the number of savers at Clydesdale outnumbers borrowers by a factor of ten to one, added Mr Reid.
National Australia Bank, the financial services company that owns both banks, recently had to issue denials that it was considering liquidating its UK assets in a ‘fire sale’ this past September. Mark Joiner, the executive director for the bank, said that NAB was not prepared to take a loss on the £2.8 billion worth of UK-based assets, adding that the new ISA offerings show a determination to grow their market share instead of surrendering it.
Meanwhile, Spanish banking giant Santander has followed up on its innovative ‘upfront interest’ saver with the launch of an inflation-linked saver with a six year term in an effort to offer savers a guarantee against the real-term losses that accompany interest rates below the nation’s inflation rate.