UK: Atom Bank launches competitive fixed rate bond

Atom Bank, a digital-only provider, has launched a new savings account, which consists of a one-year fixed-rate bond paying 2.05% AER, becoming the first savings account to offer more than 2% AER since 2016.

To open this account, which is only available via mobile, consumers must download the bank’s app and make an initial deposit of at least £50 in the first week after opening it.

There are no available withdrawals or transfers allowed until account maturity.

According to RFi Group data, 16% of savers interact with their primary savings account provider via a mobile banking app, with this proportion increasing further amongst Millennials.

Thus, uptake of this account could be largely seen among the younger consumers.

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