Current Account

Kroo Bank Ltd – Current Account

Commenting on the deal, Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"While many savings accounts offer more competitive returns, the app-based account from Kroo Bank may be ideal for those in the habit of holding larger sums in their current account. It pays 3% AER interest on balances of up to £500,000 – but only for new customers. Interest is paid monthly but it includes a 2% AER bonus which applies for the first 12 months, which should be taken into consideration by anyone planning to use the account over a longer term.

"The easy to open app-based account also offers fee-free transactions abroad, making it a tempting proposition for anyone who regularly spends or withdraws money overseas.”

Key product details:

• Rate: 3.00% AER includes a 2.00% AER bonus for 12 months  
• Cashback on debit card purchases: None
• Account fee: None
• Maximum interest earning balance: £500,000 
• Minimum age: 18
• Opening account: Smartphone app
• Managing account: Smartphone app 
• Other information: Fee-free transactions abroad.

Residential Mortgages

Yorkshire Building Society – Three-year fixed-rate house purchase mortgage

Commenting on the deal, Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"In some positive news for borrowers, Yorkshire Building Society has cut most of its fixed mortgage rates this week. Its three-year fixed-rate house purchase deal at 80% loan-to-value has been reduced to 5.15%, with the rate fixed until 31 January 2030. Ideal for homebuyers looking for certainty in what they will be paying over the next few years. 

"The mortgage comes with a £1,495 fee, although a free valuation is also included. Buyers should therefore consider the total cost of the deal alongside the headline rate, particularly when comparing it with mortgages carrying different fees or incentive packages."

Key product details:

• Rate: 5.15% 
• Term: Fixed rate until 31 January 2030 
• Product fee: £1,495 
• Maximum loan-to-value: 80% 
• Available to: First and second-time buyers
• Incentives: Free valuation fees 
• Flexible features: Overpayments (regular or lump sum) up to a total of 10.00% of the outstanding balance per year are allowed without charge
• Lending area: Great Britain and Northern Ireland.

Santander – Two-year fixed-rate mortgage

Commenting on the deal, Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"Santander has cut rates across much of its residential mortgage range, ending a series of incremental increases. Its two-year fixed-rate mortgage at 60% loan-to-value has been cut by 0.14% to 4.99%, fixed until 2 January 2029. It is one of very few sub-5% fixed rate deals available, but it is only an option for second-time buyers with a sizeable deposit or significant equity.

"It comes with a £999 fee, but borrowers can benefit from a free valuation and £250 cashback. As ever, borrowers should look beyond the headline rate and consider the fee and incentives alongside the monthly mortgage cost when choosing a deal."

Key product details:

• Rate: 4.99%
• Term: Fixed rate until 2 January 2029 
• Maximum loan-to-value: 60% 
• Available to: Second time buyers 
• Product fee: £999
• Incentives: Free valuation. £250 cashback
• Lending area: Great Britain and Northern Ireland.

Savings

Chip – Chip Smart Cash ISA

Commenting on the deal, Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"Chip has increased the rate on its Smart Cash ISA to a market-leading 4.72% AER. The higher rate could make the account worthy of consideration for savers looking for a competitive variable return while keeping their savings within a Cash ISA.

"However, the headline rate includes a 1.22% AER bonus for the first 12 months, after which the rate will fall. Savers should therefore consider what rate they will receive once the bonus expires and review their options at that point to ensure their money continues to earn a competitive return."

Key product details:

• Rate: 4.62% gross / 4.72% AER (Includes a 1.18% gross / 1.22% AER bonus for the first 12 months)
• Minimum opening amount: £1
• Maximum investment amount: None
• Access: Easy access
• Transfers in: No
• Transfers out: Yes, no interest paid for the month if transferred out
• Opening account: Mobile app
• Managing account: Mobile app
• Other information: Minimum applicant age 18. 

Tandem Bank – Two-year Fixed Rate Cash ISA

Commenting on the deal, Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"Tandem Bank has increased rates across its Fixed Rate Cash ISA range this week, with its two-year cash ISA now paying a market-leading 5.08% AER. This is a strong guaranteed return for savers looking to make use of their ISA allowance, particularly those who are comfortable committing their money for the fixed term.

"One useful feature is that additions can be made for 14 days from account opening, providing some additional flexibility for savers who may need a little more time to transfer their intended funds. However, investors should consider whether a fixed-term ISA fits their circumstances before committing their money."

Key product details:

• Rate: 4.97% Gross / 5.08% AER 
• Notice/term: Two years
• Minimum opening amount: £0
• Maximum investment amount: £250,000
• Access: Earlier access on closure only subject to 180-day loss of interest 
• Further additions: Can be made to all Fixed Rate ISAs for 14 days from account opening.
• Transfers in: Permitted, from cash ISA only
• Transfers out: Permitted, subject to 180-day loss of interest
• Opening account: Mobile app
• Managing account: Mobile app
• Other information: Minimum applicant age 18.