Two major banks are offering cash incentives of £250 and £200 to new customers who switch accounts, as highlighted by financial experts this week.
The Moneyfactscompare.co.uk Pick of the Week features the best products and rate changes impacting the consumer finance market. Personal finance analyst Caitlyn Eastell reviewed a range of deals, from mortgages to savings and current accounts, assigning ratings to each.
Savings: Vanquis Bank 1-Year Fixed Rate Cash ISA
Eastell noted that Vanquis Bank increased rates on its Fixed Rate Cash ISAs. The one-year option now offers 4.66% AER, leading the market. Savers must deposit at least £1,000, but those investing the full £20,000 allowance could earn over £900 in interest over the year. Interest can be paid annually or monthly, but early access incurs a penalty. Additional deposits are allowed for 30 days via a nominated account. The account earned a 'Best Buy' and 'Excellent' rating.
Mortgages: Barclays Two-Year Variable Tracker
Barclays adjusted its variable and fixed rates. The two-year variable tracker at 60% loan-to-value now sits at 4.06%, a small 0.05% rise but still a top deal. It offers a lower initial rate than fixed deals, with a £999 product fee, free valuation, and £250 cashback for remortgagors. The deal earned an 'Outstanding' rating.
Buy-to-Let: Leeds Building Society Five-Year Fixed Rate
Leeds Building Society cut its five-year fixed rate for landlords by 0.22% to 4.67% until August 31, 2031, at 60% loan-to-value. Available for second-time buyers and remortgagors, it carries a £1,499 fee but includes free valuation and remortgage assistance. Overpayments are allowed. The deal earned an 'Outstanding' rating.
Current Accounts: First Direct 1st Account
First Direct increased its switching incentive to £200 for customers using the Current Account Switch Service. The account has no monthly fees and offers a £250 interest-free overdraft buffer, though exceeding it incurs 39.90% EAR. No credit interest is paid, but a linked 12-month regular saver is available. The account earned an 'Outstanding' rating.
