Charter Savings Bank withdraws competitive savings accounts

Charter Savings Bank has withdrawn a number of its highly competitive saving accounts today, including its chart-topping 5 Year Fixed Rate Cash ISA, but fortunately for savers, there are a number of accounts that offer the same or higher rates.

The accounts that have been withdrawn by Charter Savings Bank are:

• 95 Day Notice – Issue 25, which had a rate of 1.81%
• 5 Year Fixed Rate Bond, which had a rate of 2.25%
• 5 Year Fixed Rate Postal Bond, which had a rate of 2.25%
• Easy Access Cash ISA – Issue 12, which had a rate of 1.44%
• 5 Year Fixed Rate Cash ISA, which had a rate of 2.00%.

Here are the accounts that can match or beat the rates offered by the withdrawn accounts

While Charter Savings Bank’s 95 Day Notice – Issue 25 was the best rate for its term there are two accounts that offer a higher rate, but which require a longer notice period. PCF Bank’s 180 Day Notice Deposit Issue 1 pays 1.85% on a 180 days’ notice and Gatehouse Bank’s 120 Day Notice Account pays an expected profit rate of 1.82% on 120 days’ notice. Both these accounts require a minimum opening deposit of £1,000 – lower than that needed for the withdrawn Charter Savings Bank account, which required £5,000. In addition to this, like Charter Savings Bank’s account, they can be both opened and managed online, while the account from PCF Bank can also be opened by post and managed by post and by phone.

Close Brothers Savings’ 95 Day Notice Account has the same notice period as Charter Savings Bank’s account of 95 days, however it pays a slightly lower rate of 1.80%. It requires a higher opening deposit of £10,000 and can only be opened by post and then managed by post and by phone.

There are a number of accounts that offer a higher rate than Charter Savings Bank’s 5 Year Fixed Rate Bond and 5 Year Fixed Rate Postal Bond, both of which paid 2.25%. Gatehouse Bank pays the top rate in the chart with its Fixed Term Deposit paying an expected profit rate of 2.45%. This account requires a minimum deposit of £1,000, which again is lower than Charter Saving Bank’s £5,000 and like the 5 Year Fixed Rate Bond can be opened and managed online. For savers looking for an account that can be opened online and by post, before becoming purely postal-operated like the 5 Year Fixed Rate Postal Bond, the 5 Year Fixed Rate Account from Hodge Bank pays 2.30%. This account requires an opening deposit of £1,000 and can also be managed by phone.

Coventry Building Society’s Limited Access ISA pays the same rate as Charter Savings Bank’s Easy Access Cash ISA – Issue 12, paying 1.44%. Limited Access ISA rate includes a 0.29% bonus until 31 January 2021. Savers should be aware that unlike Easy Access Cash ISA – Issue 12, which allowed unlimited withdrawals, the account from Coventry Building Society limits withdrawals to three penalty-free withdrawals per annum, with further withdrawals subject to 50 days’ loss of interest. However, this account only requires a £1 deposit to open compared to £5,000 that the account from Charter Savings Bank required. Not only this, but Easy Access Cash ISA – Issue 12 could only be opened and managed online, while Limited Access ISA can be both opened and managed online, in branch, by post and by phone.  

Several accounts match Charter Savings Bank’s 5 Year Fixed Rate Cash ISA rate of 2.00%, however the account that can also be opened and managed online is 5 Year Fixed Rate Cash ISA (3) from Family Building Society. This account requires a deposit of £1,000 to open, significantly lower than the £5,000 required by 5 Year Fixed Rate Cash ISA, however savers should be aware that it does not allow withdrawals. As well as being opened and managed online, the account from Family Building Society can also be opened and managed in branch and by post.