New best buy one-year savings account launches just as rates drop

Afin Bank has launched a new one-year fixed rate account paying a top rate of 4.52 per cent. 

It has propelled to the top of the savings best buy tables, knocking Chetwood Bank with its 4.5 per cent one year fix out of the top spot. 

The launch comes at a time when the trajectory of savings rates is only going in one direction. 

Many savings providers have cut rates since the Bank of England cut the base rate to 4 per cent. 

Fewer fixed-rate bonds are beating inflation which is now at 3.8 per cent, data from rates scrutineer Moneyfacts Compare shows. 

This is a problem for savers because it means the value of their money is being eroded in real terms. 

> See the best fixed-rate savings accounts  

Afin Bank has lauched a new fixed-rate bond to beat the rest with a best buy rate of 4.52 per cent. 

Inflation-beating fixed-bonds take up just one quarter of the savings market. Over the past month, the number of fixed bonds paying above inflation has fallen by more than 100

The average one-year fixed bond rate stands at 3.97 per cent, so Afin Bank’s bond beats this by some margin. 

A saver keeping £10,000 in this account would earn £461.48 in interest at the end at of the one-year term, according to This is Money’s savings calculator. 

Afin Bank is a specialist lender which was founded support people from the African diaspora and other foreign nationals in the UK, who might struggle to get a mortgage from mainstream lenders. But anyone can open it. 

It is an app-based account so you must dowload Afin’s app to open it. 

Once you have done this, the account can be opened with a deposit starting from £1,000 and a maximum amount of £200,000. You will have 14 days to fund the account once it is open. 

Any money held in the account is fully protected under the Financial Services Compensation Scheme (FSCS) up to £85,000 in the event that Afin Bank fails.  

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