Savers have been given a much-needed boost in a world of dire rates, after app-only bank Atom launched a raft of best-buy fixed savings accounts – including a one-year account offering 2% interest.
This fixed saver account, the first product of its kind to offer a 2% rate since March 2016, beats the next-best offering from Secure Trust Bank (1.61%) by 0.39 percentage points.
We're not saying this is a world-beater as by historical standards it's still low, but it is at least a rare boost to current rates, smashing the competition out of the water.
See our Top Savings Accounts guide for full info on how to get the best return for your cash.
What new deals has Atom launched?
As well as the new 2% one-year account, Atom's launched three longer-term products as well – all of which offer the best rate on the market for that length of fix. These are:
- Two-year fix – 2.1% (next best, Charter Savings Bank at 1.75%)
- Three-year fix – 2.2% (next best, Secure Trust Bank at 2%)
- Five-year fix – 2.4% (next best, Secure Trust Bank at 2.2%)
See Fixed savings accounts for a full rundown of how the accounts compare.
With all four Atom accounts, interest is paid annually or monthly. There's a minimum deposit of £50, while the upper limit is £100,000.
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I've never heard of Atom – who are they?
It's essentially a challenger bank – the company doesn't have any high-street branches and operates via an app that customers can download to their Android or Apple smartphone.
Atom is UK-regulated, which means your savings are protected under the Financial Services Compensation Scheme for up to £85,000 per person – read more in our Are My Savings Safe? guide.
Atom unveiled its fixed savings products last year and has since launched a range of mortgages. It's preparing to launch easy-access savings and current accounts in the next few months.
Clare Framrose, Atom's head of customer propositions, said: "Savers have had a tough deal with traditional banks, and we are determined to offer something better. Being purely digital, we are able to operate a lower cost model and pass these savings back through great interest rates."