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Gatehouse Bank bucks market trend with savings rate increase

  • Rate increases applied to three Fixed Term Deposit accounts and three Fixed Term Cash ISAs

Gatehouse Bank has today provided a boost to savers by increasing returns on six of its most popular savings accounts.

It has been a challenging time for investors, with rates falling across the board, and the Bank of England base rate sitting at just 0.1%.

However, Gatehouse is bucking the trend by announcing increased returns from its 2 Year, 3 Year and 5 Year Fixed Term Deposit accounts. New Expected Profit Rates (EPRs) are 1.10% 1.25% and 1.50% respectively — all tipped to be market leaders.

Fixed Term Deposit accounts rate changes

Product

New Rate

Old Rate

2 Year Fixed Term Deposit

1.10%

0.75%

3 Year Fixed Term Deposit

1.25%

0.90%

5 Year Fixed Term Deposit

1.50%

1.10%

The Bank’s 2 Year, 3 Year and 5 Year Fixed Term ISA accounts, launched in April 2020, will also all see rates rise today. The 2 Year Fixed Term Cash ISA will now attract a rate of 0.80%, the 3 Year will rise to 0.90% and the 5 Year will increase to 1.30%.

Fixed Term Cash ISA rate changes

Product

New Rate

Old Rate

2 Year Fixed Term Cash ISA

0.80%

0.55%

3 Year Fixed Term Cash ISA

0.90%

0.70%

5 Year Fixed Term Cash ISA

1.30%

0.80%

All Gatehouse Bank savings accounts are covered by the Financial Services Compensation Scheme and require an initial deposit of £1,000. As the challenger bank is Shariah-compliant, its products have an EPR instead of an interest rate.

Nash Gill, Head of Savings at Gatehouse Bank, said:

“It is a testing time for savers, with rates falling considerably during the last 12 months, so we are proud to buck market trends and introduce a suite of enhanced rates to provide welcome rewards for our customers.

“Savers currently have to work very hard to build their nest-eggs, so we wanted to provide enhanced rates for those wanting to put something away.”

Gatehouse Bank is an ethical bank by virtue of its Shariah-compliant status, and ensures deposits are not used to support sectors such as alcohol, gambling, tobacco, adult entertainment, and the arms industry.