UBL launches market-leading five-year fixed rate bond
Savers can earn a new best buy rate of 2.47 per cent if they lock their money away for five years with UBL UK.
The Islamic bank’s five-year savings product rate pays 2.47 per cent gross on maturity, 2.36 per cent on anniversary, or 2.33 per cent monthly.
Brian Firth, CEO of UBL UK, said: “We are seeing some interesting trends in the fixed term savings market with many five-year fixed deposit accounts paying less than some of their shorter term counterparts. We believe the market is being driven by sentiment from the Bank of England indicating a potential for reductions of the base rate in the near term. Brexit uncertainty is also posing some challenges with depositors taking a shorter term view of their savings whilst the economic outlook is uncertain.
“As a community-focused bank, UBL UK works hard to reward savers with competitive rates of interest on our conventional savings accounts, or profit on our ethical Islamic savings products. We feel that savers taking the long term view may be able to lock in a higher rate of interest over five years with our new rate, in light of potential for reductions to the shorter term deposits rates if the Bank of England does in fact reduce the base rate.”
UBL UK offers a range of ethical Islamic savings accounts, as well as conventional products that serve the needs of UK savers looking for a bank that shares their values. The five-year fixed term deposit is available for all new applications or roll-overs for existing customers.
Applications can be made by post, or by visiting a UBL UK branch. Savers need a minimum of £2,000 to open an account and can invest up to £1m.
Rachel Springall, finance expert at Moneyfacts.co.uk, said “UBL UK has increased the rate on its five-year fixed deal this week by a substantial 0.66 per cent, resulting in it assuming a market-leading position.
“Now paying 2.47 per cent on maturity, this new offer may well appeal to savers searching for a fixed return over the longer term. Those looking for monthly interest also have this option here, but for a smaller return of 2.33 per cent. Savers must be satisfied with their initial investment, although this deal does allow earlier access, subject to a 365-day interest penalty. This account earns an ‘excellent’ Moneyfacts product rating in the process.”