BM Savings bumps up easy access account interest rate to 1.6%

BM Savings increases rate on easy access savings account from 1.35% to 1.6%.

BM Savings has boosted the rate on its BM Online Extra easy access account from 1.35% to 1.6%.

It's a welcome change in an area of the savings market that has suffered very little competition to drive better rates.

What the account offers

The BM Savings Online Extra pays a rate of 1.60%, though it's important to note that includes a 1.10% bonus for the first 12 months. So you will need to move your money to a new home in a year's time. If you want the 1.60% interest rate, you'll need to deposit at least £1,000. You can open the account with less than that, but you'll be stuck with an awful 0.5% interest rate.

Unlike many recent market-leading easy access accounts, the BM Savings Online Extra offers unlimited withdrawals so it truly is an easy access account.

How it compares

If you're over 50 you can get a rate of 1.50% from Saga with its Telephone Saver. This account is actually provided by BM Savings, so all of the terms above apply to this account too. If you have a Kent Reliance Building Society branch nearby, you can get the same rate on its Branch Easy Access Savings account. This doesn't come with a bonus and can also be opened with £1,000. There are no limits on withdrawals.

Compare savings accounts with lovemoney.com

Better off with a current account

Current accounts currently offer far more impressive returns on your savings if you don't have huge balances, and offer unrestricted access to your money too.

Here are the top interest-paying current accounts

Current Account	Interest Rate (AER)	Yearly fee
Nationwide FlexDirect Account	5% for the first year on balances up to £2,500	None
TSB Classic Plus Account	5% on balances up to £2,000	None
Club Lloyds Current Account	4% on balances between £4,000 and £5,000	£5 a month if you don’t pay at least £1,500 in to your account
Tesco Bank Current Account	3% on balances up to £3,000	£60
Santander 123 Current Account	3% on balances from £3,000 to £20,000	£24 (£2 a month)
Nationwide FlexPlus	3% on balances up to £2,500	£120 (£10 a month)
Bank of Scotland Classic Account with Vantage	3% on balances up to £5,000	None
Clydesdale Account Direct	2% on balances up to £3,000	None

Compare even more current accounts with lovemoney.com

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