The Bank of England (BoE) increased the base rate from 4.50% to 5.00% in June. It was the 13th consecutive base rate rise since December 2021 and is now the highest it has been since 2008. After years of historically low rates, savers are finally able to benefit from improved savings rates and each week, we update the best savings rates in the market to help savers maximise the interest they can get on their cash.
With the market predicting that interest rates could stay higher for longer, United Trust Bank has launched a savings account that tracks the Bank of England base rate. This means that the interest rate on the account will change in line with any future base rate changes. In this article, we look at the newly launched savings account by United Trust Bank including the key features, how it works and how the account compares to other savings accounts.
What is the new base rate tracker savings account by United Trust Bank?
United Trust Bank (UTB) has launched a 180 day notice savings account which tracks the Bank of England base rate. This means that the interest rate payable on the account will change in line with any BoE base rate changes, meaning it the interest rate payable could go down as well as up.
A notice account is a type of savings account where the money is locked away for a certain period of time before it can be accessed. Those wishing to access money before the notice period has expired can usually do so, however, there may be an early withdrawal charge or penalty. The United Trust Bank notice period on this particular savings account is 180 days. Therefore in order to access the money you would need to provide 180 days notice either in writing, via the website contact form or using online banking before you can access your money.
UTB 180 Day Notice Base Rate Tracker Account key features
- 5.00% variable AER (current BoE base rate)
- Interest rate tracks Bank of England base rate (and can move up or down)
- 180 day notice period
- Account can be opened singularly or jointly
- Minimum £5,000 deposit amount
- Maximum £1m deposit amount
- Interest is paid annually on the 31st October
- Money must be deposited within 14 days of account opening but additional deposits can be made at any time
How does the UTB Base Rate Tracker savings account work?
The newly launched base rate tracker account by United Trust Bank works by paying an interest rate that is in line with the Bank of England base rate. At present, the BoE base rate sits at 5.00% which is the interest rate payable on the UTB base rate tracker savings account. If the BoE base rate was to rise or fall at the next announcement, the interest rate on this account will increase or decrease to reflect the change within 3 days. Account holders will be notified of the interest rate change via letter or email and the new rate will be published on the United Trust Bank website. The current Bank of England base rate and the next announcement date can be found on the BoE website.
How to open a UTB 180 Day Notice Base Rate Tracker account
The United Trust Bank base rate tracker account can be opened online however you need to ensure you meet the following eligibility criteria:
- Aged 18+
- A permanent UK resident
- Can deposit a minimum of £5,000 (maximum deposit amount is £1m)
- Must fund the account within 14 days of the account opening
- Have a nominated UK bank account
Alternatives to the United Trust Bank savings account
If you are unsure whether the United Trust Bank 180 day Notice Base Rate Tracker savings account is right for you, you can see how it compares to other notice accounts on our regularly updated Notice Account best buy table. Our article, 'Best savings accounts in the UK' also compares the best savings accounts in the market across multiple savings account types.
