The UK savings provider has launched two new fixed rate ISAs and two new fixed rate bonds. According to data available through Moneyfacts, all four accounts offer some of the highest interest rates currently found on the high street.
The minimum investment for the bonds is also £1,000, with a cap of £250,000 for individual accounts and £500,000 for joint accounts.
Neil Alcock, head of austerity strategy, said he hoped the new interest rates would ease some of the current financial strains.
“As a mutual, we always have the interests of our customers at heart and people need our support now more than ever.
“The recent surge in inflation and interest rate hike have raised understandable concerns and, as Rishi Sunak acknowledged in his spring statement this week, the outlook for the economy remains uncertain.”
He continued, “We hope that by highlighting some of the benefits of the base rate hike through our savings accounts, we will help alleviate some of the pressure that the rising cost of living is putting on our customers.
“The range of competitive fixed-rate accounts now available will help households get more out of their savings in 2022 and beyond.”
Meanwhile, experts claim UK banks are failing to pass on higher interest rates to their customers, causing them to lose “billions of pounds” in interest.
Laura Suter, Head of Personal Finance at AJ Bell, said: “While banks are very quick to pass on any rate hike to their mortgage customers, savers will have to wait longer and many will see no hike at all.”
She continued: “A lot of people’s savings just sit in their checking account or old savings account and earn 0.01 percent.
“And those people probably won’t see an increase in the interest rate they get, instead the banks will pocket the difference to grow their profits.”
Financial journalist Martin Lewis recently asked the question “use, lose or give up altogether” when it comes to ISAs.
He concluded, “Most should abandon cash ISAs for accounts that pay more.”