Yahoo Finance Top fixed-rate bonds launched, but only for banking app customers
New top paying fixed-rate bonds have been launched, but only for those using a smartphone app.
Atom Bank, the mobile provider, has launched four new bonds that all pay a top rate.
The one-year Fixed Saver pays 1.95pc, above the current highest payer Shawbrook Bank's bond at 1.8pc.
However, Atom customers who opened the account in February would have earned 2pc. The rate was cut to 1.8pc the following month, and then to 1.65pc a week later.
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Atom Bank has increased the rate of its two-year bond to 2.1pc - the same rate it offered in February before cutting it to 1.7pc the following month. This is slightly higher than Paragon Bank and Shawbrook Bank, which both pay 2.05pc.
Atom's three-year bond pays 2.25pc, which matches the rate of the top four-year bond from Vanquis Bank Savings and PCF Bank and beats National Savings and Investments three-year bond, which pays 2.2pc.
The NS&I account also restricts deposits to £3,000 while Atom Bank customers can pay in up to £100,000 - although only £85,000 is protected by the Financial Services Compensation Scheme.
Atom has also launched a new five-year bond that pays 2.5pc, matching the top rate offered by Vanquis Bank Savings.
Islamic providers, such as Al Rayan and Bank of London and the Middle East, can often pay higher rates although the return is not guaranteed in the same way as interest.
Instead, the banks offer an "anticipated profit rate" that can change during the term. If the rate does change, the banks offer customers the option of withdrawing their funds with no penalty at the originally quoted rate.
BLME and Al Rayan both have one-year deposit accounts that pay a slightly higher rate of 2pc. However, this rate is not guaranteed and BLME customers must have at least £25,000 to save. Atom Bank matches or beats the rate of the other accounts.
All of Atom's accounts must be managed using its app, which can be downloaded from the Apple App store or Google Play. This low-cost digital model is what Atom Bank attributes its often table-topping rates.
See here for more on the top fixed-rate bonds.
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