Aldermore bank has increased the interest rate on a range of its savings accounts, including fixed rate savings and ISAs.

The bank’s Fixed Rate Savings accounts provide long term rates for an agreed period, protecting savers from interest rate fluctuations.

Aldermore has boosted its one-year Fixed Rate to 1% from 0.95% and increased its two-year Fixed Rate to 1.05% from 1%.

Tax-free savings

ISAs provide a tax-free wrapper for your savings and the bank has increased savings rates on its Fixed Rate Cash ISAs. The products provide guaranteed interest rates over a choice of terms, and the interest you earn is tax free and doesn’t count towards your Personal Savings Allowance.

The changes include:

• The one-year Fixed Rate ISA has been increased to 0.85% from 0.80%
• The two-year Fixed Rate ISA has been increased to 1.05% from 1.00%
• The three-year Fixed Rate ISA has been increased to 1.10% from 1.05%.

Ewan Edwards, director of savings at Aldermore, said: “Lockdown has helped many people start a regular savings habit and build up a savings pot.

“Whether it’s to go towards a particular savings goal or to be kept safe for a rainy day, having the financial security to realise those dreams reinforces the important message to keep saving.

“Fixed rate saving products offer protection against fluctuations and are particularly beneficial for forward planning as savers will know exactly how much they’ll receive at the end of the chosen term. These products are the ideal savings vehicle for planning towards a big purchase like a car, housing deposit or a big occasion like a dream holiday or wedding.”