Savers have until 11.59pm tomorrow to sign up for Atom Bank's one-year fixed-savings account paying a market-leading 2%, with MoneySavingExpert.com exclusively revealing that the app-only bank plans to cut the rate to 1.8% from 10 March.
The savings rate, which was boosted by Atom just two weeks ago, offers savers the chance to earn 2% on a one-year fix. The rate provided a lifeline to savers amid the current low-interest environment, beating the next-best offering from OakNorth Bank (1.62%) by 0.38 percentage points.
Despite its decision to chop the 2% rate so soon after its launch, Atom has confirmed to MSE that there will be no changes to its two-, three- and five-year fixes, which currently top our best-buy tables.
See our Top Savings Accounts guide for full info on how to get the best return for your cash.
What are the other Atom Bank rates?
As well as the soon-to-be slashed 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, OakNorth Bank at 1.66%)
- Three-year fix – 2.2% (next best, Secure Trust Bank at 2%)
- Five-year fix – 2.4% (next best, Vanquis Bank at 2.21%)
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.
What does Atom say?
A spokesperson for Atom said: "We continue to offer the best savings rates of all providers across all of our products, and the new rate for the one-year fixed saver (1.8%) remains market-leading. Atom is building products that offer the best rates with the best possible service and experience, as well as the best returns.
"We are building a business from scratch and are committed to growing that business honestly and transparently. Our customers are our top priority, and we continue to develop products and services that currently give them better rates than any other provider, and we hope to give our customers the best possible banking experience."
Atom confirmed to us that those who open a one-year fixed account by 11.59pm tomorrow (9 March) will still get the 2% rate.
I've never heard of Atom – who are they?
Atom is 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.