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Savings platform Prosper is offering short-term fixes and a boosted notice account that beat the top one-year fixed rates.
The OakNorth* 120-day notice tracker currently pays 4.5 per cent to new customers, thanks to the 0.51 per cent boost from Prosper on top of its standard 3.99 per cent AER rate.
This beats the best one-year fix from Access Bank that currently tops This is Money’s fixed rate savings tables.
Previously, the top one-year fix came from Marcus by Goldman Sachs at 4.55 per cent but that deal is no longer available.
The OakNorth deal joins other rates in Prosper that benefit from boosts, including short-term fixed deals from Aldermore* and Santander International*, paying 4.35 per cent over six months and 4.3 per cent over three months respectively.
Prosper’s deals give savers a few more options in the effort to maximise interest earned. Deals can change quickly, so those who want them should act swiftly.
The boosted element of the rate is also tax-free, according to the savings platform, because HMRC treats it as a cashback incentive rather than interest.
> Find out more about Prosper and opening an account*
Better deal: Prosper is boosting rates for new customers
Prosper boosts: Which deals stand out?
Prosper is offering both three and six-month fixed-term accounts and notice accounts at boosted rates, but these are for new customers to the savings platform.
It has:
- Santander International*: 3-month fixed-term deposit, paying 4.3 per cent (3.44 per cent AER, plus 0.86 per cent Prosper boost)
- Aldermore*: 6-month fixed-term deposit, paying 4.35 per cent (3.73 per cent AER, plus 0.62 per cent Prosper boost)
- OakNorth*: 120-day notice tracker, paying 4.5 per cent (3.99 per cent AER, plus 0.51 per cent Prosper boost)
These might suit you if you want to earn a good rate of interest but don’t want to keep your money locked away for a year.
Notice accounts mean you need to say you want to withdraw, then wait until the end of the set period before receiving the funds.
These are more flexible than fixed accounts, which don’t give you any access to your money until the end of the fix.
But as with easy access savings accounts, the interest rates are variable, so you won’t be certain about how much your money will generate.
> Open a boosted Prosper cash savings account*
Do you have to pay tax on interest earned?
The savings accounts offered by Prosper aren’t protected by a cash Isa wrapper, meaning earned interest is taxable.
But interestingly, Prosper* says its added boosts are tax-free. This is because HMRC treats them as a cashback incentive for signing up rather than interest.
A boost of 0.86 per cent – which you can get on the three-month fixed-term account from Santander – could help you protect more of your money from tax.
If you’ve maxed out your tax-free £20,000 Isa allowance, this could be a handy option.
For those considering an Isa instead, Etoro* is offering an interest rate of 4.49 per cent on its easy access cash Isa for new customers, but this is through money market funds rather than cash deposit.
Alternatively, for a more traditional cash Isa Trading 212* has a rate of 4.36 per cent for new customers and it’s deal is flexible.
SAVE MONEY, MAKE MONEY
4.36% cash Isa
4.36% cash Isa
Trading 212: 0.76% fixed 12-month bonus
£100 cashback
£100 cashback
Transfer or fund at least £10,000 with Prosper
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4.49% cash Isa
4.49% cash Isa
Includes 12-month boost for new customers
£2,000 cashback
£2,000 cashback
1% cashback up to £2,000 when transferring
Sipp transfers
Sipp transfers
Get between £100 and £3,000 cashback
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