French bank's top savings rate SHAMES Britain's high street providers
A FRENCH bank has upped its savings rates for the third time in 2017, in a bid to take on Britain's biggest high street providers.
RCI Bank now offers the top easy access account for UK savers after increasing returns to 1.10 per cent - more than four times the Bank of England's 0.25 per cent base rate.
The offer puts Britain's big banks to shame, which have withdrawn or cut hundreds of rates over the past six months.
At the same time, the savings provider also increased the rates on its fixed-rate bonds.
The Freedom Savings Account can be opened with a starting balance of £100 and there are no penalties for withdrawing cash.
Experts said RCI was smashing the competition, after it launched in Britain in 2015.
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Customers are protected by the French equivalent of the Financial Services Compensation Scheme.
It means around £85,000 (€100,000) of cash is covered should the provider run into trouble.
Susan Hannums, director of independent saving adviser Savingschampion.co.uk said: “RCI does it again, smashing the competition, this time increasing its popular Freedom Savings Account for the third time this month.
"RCI Bank has continually been the leader in driving competition in the savings market since it launched with a bang, back in 2015."
It comes after a number of smaller or new name providers - dubbed challengers - try to shake-up Britain's savings market.
The Post Office, Virgin Money and Ikano Bank are among the smaller provider that have also raised rates this year.
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Charlotte Nelson from Moneyfacts.co.uk said: “The big brands have abandoned the Best Buy charts and it all boils down to the fact that these providers simply do not need savers’ money to fund their borrowing.
"However, as challenger banks are still relative newcomers to the market they need to get savers’ attention, and the best way to do that is by offering attractive savings rates.
“One of the biggest hurdles challenger banks face is getting savers to trust their brand.
"But there really isn’t any reason to fear the unfamiliar for the majority of challenger banks have a UK banking licence and some have already become well-established.”
