Barclays instant access savings account offers 5.12% for savers

Interest rates: Rocketing peaks demonstrated in Sky News graphic

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Blue Reward customers can get a variable rate of 5.12 percent on balances up to £5,000. Savers can open the account with a £1 deposit and can set up a standing order to gradually grow their savings pot.

Customers may want to note that the interest rate drops to 0.15 percent for balances over the £5,000 limit.

A person who deposited £1,000 into the account would after 12 months see the balance grow to £1,051.16.

If a saver invested £5,000 in their Rainy Day Saver, the amount would grow to £5,250.17 after a year.

The Rainy Day Saver account is the latest exclusive benefit available to Barclays Blue Rewards membe

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The Blue Rewards scheme is a programme to reward customers by giving them cash rewards each month.

Customers get more rewards for having or opening other accounts or services with the bank.

Other existing benefits include monthly cash rewards on products such as mortgage, insurance and loans as well as access to the Blue Rewards Saver account.

David Kelly, Head of Savings at Barclays, said: “Customers are looking for ways to build their savings, and the Barclays Rainy Day Saver helps them to create an instant access emergency fund with a headline rate for balances up to £5,000.

“The Barclays Blue Rewards scheme is designed to help people make their money work harder with access to exclusive savings products.

“It sits alongside Barclays’ highly competitive fixed rate bond and ISA options, which are available to all, helping customers to save more.”

The Rainy Day Saver comes with a £5 monthly membership fee and savers also have to pay in at least £800 a month.

The account can be managed using the app, online banking, over the phone or by visiting a Barclays branch.

Analysts have predicted interest rates could reach six percent over the coming months, with the Bank of England base rate currently at 2.25 percent.

The central bank has increased the base rates several times in the past months in efforts to tackle soaring inflation, which is expected to continue to increase.

The Bank of England is expected to add a further 75 basis points to borrowing costs when it meets on November 3.

Analysts at Goldman Sachs have said: “We are not yet convinced that the BoE will be able to – or want to – respond forcefully enough on policy rates to shore up the currency in the near term.”

A new report showed the average five-year fixed-rate mortgage on the market has hit six percent for the first time in 12 years.

The typical five-year fixed-rate mortgage on Thursday was 6.02 percent, having shot up from 5.97 percent last Wednesday.

The last time average five-year fixed-rate mortgages were at six percent was in February 2010, when the rate was six percent.

The average two-year fixed-rate mortgage stands at 6.11 percent, having breached the six percent mark on Wednesday, for the first time since November 2008.

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