Wise, the global technology company building the best way to move money around the world, has taken UK savers back to the nineties - albeit without the pain of Gazza’s tears, or the culinary delights of Little Chef. 

Wise now offers UK customers a rate of 4.12% on its instant access Interest account for GBP balances, rates rarely seen since the early nineties, when central bank rates were higher than an average Hacienda punter. Wise Interest allows personal and business customers to switch their cash balances into an interest-earning fund holding government assets such as government bonds (see below for more information.)

While high street banks continue to offer rates more punishing than a Blockbuster late fine, Wise has committed itself to passing on rising central bank rates to consumers, with the Bank of England increasing its rate to 4.5% last month.

For instant access accounts, the UK’s ‘big four’ currently offer less-than-gnarly rates: 

• Barclays, Everyday Saver: 0.70%

• HSBC, Flexible Saver: 1.35%

• NatWest, Flexible Saver: 1.00%

• Lloyds Bank, Easy Saver: 0.90% 

Nilan Peiris, Chief Product Officer, Wise, said:

“The nineties are back in a big way - from the return of Gladiators, to baggy jeans and curtain hairstyles. But it’s not all bad! At Wise, we’re proud to be able to offer an instant access rate that takes savers back to the future. 

“We think it’s wrong that big banks continue to offer savers such appalling rates, especially at a time when inflation is high and consumer pockets are being hit. Banks are happy to offer customers’ money to other customers as loans and mortgages, but they do not pass on their returns.

“Wise Interest offers the benefits of a savings account, with a current account experience — and UK-based customers can get returns on USD and EUR balances, too. We’re proud that we can offer an instant access account with this rate, but we hope others follow our lead and give UK consumers a fair deal.” 

When a customer opens a balance with Wise Interest, their money is moved to an interest-earning fund that holds government assets such as bonds. By holding short-term bonds, Wise is able to quickly liquidate its bonds without significantly impacting their market value. This allows Wise to offer a rate that broadly mirrors the one set by the Bank of England, with customers charged just 0.29% in service and fund management fees annually.

For more information see: https://wise.com/gb/interest/