Bank launches market-leading saving rate that’s highest in 13 years – and you only need £50 to open it

SAVERS looking to make the most of their cash can now get more back as savings rates hit a 13-year-high.

Interest rates are on the rise and banks are finally upping the rates offered to savers.

Banks are now fighting one another for new customers by offering more attractive interest rates - and one bank is offering savers 4.1%.

The Bank of England has raised the base rate seven times over the last few months, from a low of 0.1% to 2.25% and while it's bad news for borrowers it's great for savers.

Higher interest rates allow savers to get a higher rate of return when they save their hard-earned cash.

And with the Bank of England set to raise rates further into next year, savers will continue to be rewarded.

It's predicted that interest rates may hit 6% next year.

App-only challenger bank, Atom, is now offering savers 4.11% returns on savings of £50 or more in a .

It would mean that if a customer saved £1,000 across the year they'd expect to gain £41.10 over the period.

But as the account is fixed, you can also only make your deposits within the first week of opening the account.

After that, you can't withdraw the cash for a year or two depending on which account you go for.

According to MoneyFacts, this is the highest one-year rate on offer since 2009.

It is also important to keep in mind you can only open and manage the account using the bank's app, which is available both for  and  users.

Rachel Springall, finance expert at MoneyFacts, said: "Challenger banks and mutuals are offering some of the best savings rates out there, so considering the more unfamiliar brands is incredibly important, and there is little reason to overlook them if they have the same protections in place as a well-known brand.