Abbey reminds customers of new rates

Abbey has reminded its customers of the new savings rates that will be coming into effect on December 1st, following the Bank of England base interest rate hike in November.

The provider’s eSaver account, postal account and flexible saver option for children will all see 0.25 per cent increases across all tiers.

Customers holding the eSaver package will now receive annual equivalent rates (AER) of up to 5.55 per cent, while postal account rates will range from 3.25 to 4.75 per cent.

When an investor makes a deposit in the first home saver account every month and does not make a withdrawal, a rate of 4.75 per cent will be paid, 0.25 per cent higher than previously.

For balances from £750, an interest rate of five per cent will be set on Abbey’s child trust fund account, while for balances from £1, a 4.5 per cent rate will apply.

Branch saver customers will receive a rate of four per cent AER, while Abbey’s postal Isa and easy Isa will both offer up to 5.15 per cent AER.

On the subject of Isas, Rezah Attar-Zadeh, head of savings at Abbey, recently welcomed the government’s commitment to making them less complicated, saying: "Our ongoing research has shown that customers find them too complex so anything that encourages understanding is great news."