Published on: 6 Feb 2019
Thanks to a rate boost of 2.15 per cent from Gatehouse Bank savers can now get a one-year bond that beats inflation.
By opening an account through savings marketplace Raisin, savers can receive a bumper rate of up to 2.34 per cent if they deposit enough to trigger its current cashback offer.
If you can take advantage of the bumper deal, the rate hands down beats all its rivals by as much as 0.29 percentage points.
Gatehouse Bank is Sharia compliant, which means it pays an 'expected profit rate', rather than a guaranteed interest but Raisin's Make Good policy however, guarantees that savers won't get back less than they put in.
The office for national statistics recently released figures showing that Consumer Price Index inflation had slowed to 2.1 per cent which is the lowest it has been in almost two years.
For savers who have already felt the strain of inflation in recent times, the news was a welcome one.
Since the end of 2016 the gatehouse bank account marks the first time a one-year bond has beaten inflation and is currently the only one-year bond to do this.
Another advantage and point of stability is that deposits with Gatehouse Bank are fully covered by the Financial Services Compensation Scheme up to a maximum of £85,000 per person, should the bank go bust.
Alongside its 2.15 per cent one-year rate it has also bettered its two-year fixed-term deposit to 2.35 per cent, its three year deal to 2.45 per cent, both also best-buy deals.
The trick to boost your rate to 2.34%
You could earn up to 2.34 per cent - that's just shy of the top two-year bond rate (offered by Gatehouse and Investec Bank, with the benefit of locking your money away for less time.
The savings marketplace will currently also pay tiered cashback to savers opening the one-year deal through its market place:
You could earn a £10 bonus if you deposit £10,000 into your account, equivalent to a rate of 2.25 per cent.
Stick £40,000 in to the account and you earn an £80 bonus, effectively boosting the rate to 2.34 per cent.
Add in £75,000 and you earn the maximum £100 bonus, comparable to 2.28 per cent interest.
Many people are trying to find ways to beat inflation and the advantages of moving to a one–year bond are clear and may be right up your street.
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