Get a savings rate of 4.32% if you can lock your money away for 12 months
A one-year Fixed Rate Saver account has been launched this week by SmartSave, paying 4.32% interest.
To open the online account you’ll need to deposit at least £10,000 and you aren’t able to access the cash within the 12-month term.
It’s just one of a number of new savings accounts which have come onto the market this week, according to data from Moneyfacts.
Following the Bank of England’s rate rises, several providers have launched new products or increased the interest they pay on savings accounts. Yet the top of the tables are still dominated by challenger banks, amid claims the high street banks aren’t passing these rates onto customers.
Eleanor Williams, finance expert for Moneyfacts, said: “Savers happy to lock their savings pot away for the short term may well be tempted by the competitive rate of return, as this account pays 4.32% on maturity, but they must be comfortable with their investment as earlier access is not permitted. Overall, this account receives an Excellent Moneyfacts product rating.”
Beehive Money launches 18-month bond
If you can afford to put your money away for longer, Beehive Money has launched an 18 Month Goal Bond and it pays 4.50% interest.
You can open an account online, or via the provider’s app, with a minimum deposit of £500 and you can’t access the money until the end of the 18-month term. You can put up to £250,000 into the bond.
It also has a little more flexibility than standard bonds as you are allowed to deposit money for 14 days from account opening, or while the issue remains open, whichever period is longer.
Williams said: ”This may well tempt savers who are happy to secure their nest egg away for the term of the account and who are looking for a competitive rate of return.
“As may be expected with a fixed bond, early access to funds is not permitted, however, there is an element of flexibility for savers to make further additions for either 14 days from account opening, or while the issue remains open, which could be useful for some investors. On assessment, this account receives an Excellent Moneyfacts product rating.”
Close Brothers launches two-year bond paying 4.65%
You’re more likely to get a better interest rate if you can lock your money away for longer. The new bond from Close Brothers pays 4.65% and you won’t be able to access the money for the two years.
The minimum deposit is £10,000 and the maximum is £2 million. The account can be opened online and managed online, by phone, or by post. Money can be deposited for 10 days from the account being opened.
Williams said: “Investors with the required minimum investment amount of £10,000 may be pleased to note that Close Brothers Savings has introduced new fixed rate bond products this week.
“Savers looking for a guaranteed return on their savings pot may find this an attractive option, as this deal takes a competitive position in its sector, secures a position in our top tables and receives an Excellent Moneyfacts product rating.”
West Brom Building Society new five-year fixed-rate ISA
Savers looking to take advantage of their ISA allowance could be tempted by the new 5 Year Fixed Rate ISA from West Brom Building Society.
It pays 4.25% interest and can be opened with a minimum of £1. You can access money before the end of the term but there is a 365-day interest penalty.
Williams said: “This takes a place in the top 10 compared to other fixed rate ISAs with similar terms and may be an appealing option for savers who have yet to use their ISA allowance.
“Investors would need to be comfortable with their initial investment and the term of the ISA, however, some flexibility is available as further additions are permitted while the issue remains open, and earlier access is permitted (subject to a loss of interest penalty). Overall, the deal earns an Excellent Moneyfacts product rating.”