Savers are being urged to check they’re investing in the right kind of savings account as many may be missing out on higher fixed interest rates by keeping money in flexible accounts.
According to Ford Money research, nearly 40 percent of its savers who have flexible accounts haven’t touched their money for more than a year, meaning they could have been better off investing in a fixed account which would have garnered much higher returns.
Will Davies, Chief Deposit Officer at Ford Money said: “With interest rates surging there are a lot of customers looking for the very best rates – particularly for the incredibly competitive flexible saver market.
“However, we’ve seen from our latest figures that almost 40 percent of Ford Money’s flexible saver accounts holders haven’t touched their accounts in over a year.”
During that time, Mr Davies noted: “Had they switched to a one-year fixed saver, there is a significant chance that they could have secured an even higher rate.
“So, for anyone sat on the fence between a flexible or a fixed rate account, I’d certainly recommend taking a second look at that fixed rate offering – it might just help your money work that little bit harder.”
Fixed savings accounts lock in the rate of interest offered at the time of opening, adding a layer of certainty to saving. With a number of deals on offer exceeding interest rates of six percent, here are the top one-year deals available on the market now.
Top one-year fixed rate savings accounts
Topping the list of one-year savers is OakNorth Bank’s Fixed Term Savings Account with an AER of 6.09 percent, and savers can get started with £1,000.
Up to £500,000 can be invested overall and interest can be paid monthly or annually. Withdrawals are also not allowed, so savers should be comfortable holding money in the account without dipping in.
Secure Trust Bank falls just behind with an AER of 6.05 percent, according to moneyfactscompare.co.uk. The account can be opened with a minimum deposit of £1,000 and up to £1million can be invested overall.
Interest is calculated daily and applied annually on December 1 and on maturity. However, withdrawals are not permitted until the account term ends on September 12, 2024.
Cynergy Bank falls is offering an AER of 6.04 percent on its Fixed Rate Bond. A minimum deposit of £1,000 is requried and up to £1million can be invested.
Interest is calculated daily, beginning on the first working day following account opening, and is paid annually to the account balance.
Described as an account that’s “most suitable” for those who want to invest long term, withdrawals are not permitted until maturity – unless in exceptional circumstances.
