Cynergy Bank launches new best buy easy-access savings deal offering the highest rate for more than a year
- Savers will enjoy 0.7% for one year before the rate reverts to 0.3%
- Next best easy-access deal by Shawbrook Bank pays 0.67% without a bonus rate
- Savers will need to remember to switch at the end of bonus period or lose out
There is a new best buy easy-access deal in town after Cynergy Bank usurped Shawbrook Bank as the best paying provider.
The challenger bank has launched a deal paying 0.7 per cent, although this includes a bonus rate of 0.4 per cent for the first year after which the rate drops to 0.3 per cent.
Savers can open a Cynergy account with £1 and deposit up to £1million. Money is protected under the Financial Services Compensation Scheme to the tune of £85,000 or £170,000 in the case of joint accounts.
Top rate: There has been some flickers of easy-access competition in recent months
There are also no restrictions or charges on withdrawals meaning savers can access their savings whenever they wish.
Anna Bowes, co-founder of Savings Champion said: ‘It’s great to see the battle in the easy-access best buy tables continuing and Cynergy Bank is a name that we have become very familiar with as it’s often paying one of the best rates available.’
She adds: ‘It’s clearly looking to take the top spot once again having been usurped by Shawbrook Bank recently.
‘At 0.7 per cent, this is the highest rate we’ve seen for a year – although it should be noted that this rate includes a bonus of 0.4 per cent for the first 12 months, so the rate will drop after that time.’
Who are Cynergy Bank?
Cynergy Bank was formerly The Bank of Cyprus, which was offered savings accounts in the UK between 2012 and 2018, before the name change. It has been operating in Britain since 1955.
It is a specialist bank which says serves the ‘blended financial needs of business owners, property entrepreneurs and family businesses.’
Although some may be unfamiliar with the name, it was shortlisted in the category of ‘best easy-access account provider’ at the Savings Champion Awards in 2020 and it was also awarded the ‘best online savings provider’ at the Personal Finance Awards 2020/21.
|Type of account (min investment)||0% tax||20% tax||40% tax|
|BONUS accounts – Pay a bonus for the first 12 months or more. These are the rates including the bonus|
|Cynergy Bank Online Easy Access 43 (£1+) (1)||0.70||0.56||0.42|
|Tesco Internet Saver (£1+) (3)||0.61||0.49||0.37|
|Accounts WITHOUT bonus – These rates are not boosted by a temporary bonus that drops off after a year|
|Shawbrook Bank Easy Access 28 (£1,000+)||0.67||0.54||0.40|
|Paragon Bank Triple Access (£1+) (2)||0.65||0.52||0.39|
|Aldermore Double Access (£1,000+) (4)||0.60||0.48||0.36|
|Charter Savings Bank (£5,000+)||0.60||0.48||0.36|
|(1) Includes a bonus of 0.40 percentage points for the first year|
|(2) You are limited to three withdrawals a year|
|(3) Rate includes a 0.51 percentage point bonus for the first year|
|(4) You are limited to two withdrawals a year. If you make more the rate drops to 0.1 per cent|
Should savers opt for Shawbrook instead?
The average easy-access rate pays just 0.19 per cent, according to Moneyfacts, with many of the larger higher street banks paying closer to 0.01 per cent.
Rates have been nudging higher in recent months. Earlier in the summer, the top rate was 0.5 per cent.
Furthermore, Marcus Bank, which was is a big driver of boosting easy-access competition, has slipped down the list despite heading it not too long ago when it boosted its rate to 0.6 per cent.
There are now eight options for savers looking for 0.6 per cent or more. And while instant access rates are still in the doldrums and are completely blown away by the current inflation rate, there is still billions of pounds sitting in accounts earning 0.01 per cent.
The top of the market its a much closer call, with Shawbrook Bank’s easy-access deal paying 0.67 per cent, without the need of a bonus rate.
Although Cynergy Bank’s deal beats it by 0.03 per cent, unlike Shawbrook Bank, its rate is reliant on a 12 month 0.4 per cent bonus rate.
This therefore means savers will need to move their money after a year to keep their rate competitive.
James Blower, founder of the Savings Guru said: ‘I’m not a big fan of Cynergy’s new deal because more than half the rate is paid as a bonus.
‘I think that these types of bonus accounts are predicated on the basis that the majority of savers will forget to move after the bonus expires.
‘The only savers I’d recommend it to are those who religiously diarise dates and will act once the bonus expires.
‘Otherwise, I’d suggest taking the marginally lower rate of 0.67 per cent available from Shawbrook.’