Savers can now get a market-leading 5.07% on a one-year deal
SmartSave has launched a 1 Year Fixed Rate Saver paying 5.07% AER/Gross.
This takes it to the top of the best buy tables in the one-year fixed rate bond category, but savers need a hefty deposit to open the account – £10,000.
It can be opened and managed online and there’s no access to your cash. Interest is paid on maturity.
According to Moneyfactscompare.co.uk, the last time bonds were at this level was in January 2009 when a one-year fixed rate bond offered 5.10% AER.
This offer from SmartSave comes just hours after Shawbrook Bank launched its 1 Year Fixed Rate Bond paying 5.06% AER/Gross. This morning, the rate for the online account was market-leading before being beaten by SmartSave.
However, savers may still want to consider it as it has a far lower minimum deposit amount of £1,000.
Interest is calculated daily and savers can choose whether this is paid monthly or annually. As it’s a fixed term, you can’t access your cash before the product matures.
Shawbrook also launched a one-year fixed rate ISA paying 4.43% AER/Gross. Again, this was market-leading before being leap-frogged by UBL’s 1 Year Fixed Rate Cash ISA paying 4.45% AER (minimum £2,000).
The challenger has also increased rates to 3.55% AER/Gross (variable) for its Easy Access ISA and 3.75% AER/gross (variable) for its Easy Access account.
Savings market livelier than ever
Adam Thrower, head of savings at Shawbrook, said: “Incredibly, almost half of savers (47%) haven’t switched accounts since interest rates started increasing last year.
“The savings market is now livelier than it’s been for over ten years, so this should be a real incentive for people to make the most of their money and switch to a better paying savings provider.”
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Fixed pricing is judged by more than just base rate, such as provider appetite to reach deposit targets and future interest rate expectations (swaps).
“Signing up to newsletters and rate alerts is a great way to keep on top of the latest deals and compare the interest rates offered across a variety of products.”