Gatehouse has increased the rate on offer for its 1 Year Fixed Term Deposit account to 2.15%, from 2.1%, making it the highest-paying one-year fixed term account available on the market.

The account is offered online and is administered by Raisin UK, requiring a minimum investment of £1,000. This is also true for the two-year and three-year fixed accounts.

Gatehouse has also hiked the interest rate on offer for its 2 Year Fixed Term Deposit from 2.14% to 2.35%. This leaves it in second spot in Moneyfacts’ best buy tables. It is behind Al Rayan Bank, which currently offers a rate of 2.42% on its two-year bond.

Meanwhile, the rate offered on Gatehouse’s 3 Year Fixed Term Deposit has increased to 2.45%, from 2.33%. This once again leaves it in second spot, behind Al Rayan Bank’s 36-month bond, which pays an expected rate of 2.52%.

Charles Haresnape, chief executive at Gatehouse Bank, commented: “People continue to struggle to find inflation-beating savings accounts and our simple message to savers remains the same – shop around and be prepared to consider less-known providers.”

Gatehouse was keen to stress that all savings deposited with the bank are invested ethically. It follows Shariah principles, which ensure that savers’ deposits are never used to support sectors such as alcohol, tobacco, gambling, adult entertainment and arms.