Investec Bank plc is offering the highest returns to savers looking to put away money for at least one year.
The bank has increased the rate on its 1-Year Fixed Rate Saver.
The account has earned an “excellent” rating due to its high rate, making it highly competitive with other banks and building societies.
As the base rate increases, savers are urged to shop around and get the best deals available to them.
While interest rates continue to change, fixed savers enable people to lock in the rate offered at the time of opening an account – adding another layer of certainty to saving.
Britons can lock their money away for a certain period and earn a guaranteed return.
At the current interest rate, a deposit of £5,000 would generate interest of £250.68 after 12 months. This would provide a final balance of £5,250.68.
Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Investec Bank plc has increased the rate on its 1-Year Fixed Rate Saver, on the back of making an increase a week ago.
“Now paying five percent, the deal has improved its position within its sector against its peers and may be an attractive choice for savers looking to lock their money away for a year for a guaranteed return.
“Those who invest must have £5,000 to deposit upfront and, as is typical of fixed accounts, savers will not be permitted to access their funds early.
“Overall, the deal earns an Excellent Moneyfacts product rating.”
The minimum deposit needed is £5,000 and the maximum is £250,000. During the one year, savers are not permitted to make any withdrawals.
This fixed-term savings account is opened and managed online. Britons can apply in minutes and deposit their money.
Once the account is open, savers will have seven calendar days to fund it with at least £5,000 from their linked account.
If people don’t meet the minimum balance by the end of the seven days, Investec will return any money and interest earnings and close their account automatically.
Allica Bank is also offering high returns to savers looking to put away money for at least one year.
Allica Bank is currently offering an Annual Equivalent Rate of five percent.
The account can be opened online, however, the minimum deposit is £10,000 0 slightly higher than Investec. Interest is calculated daily and applied to the balance annually.
Savers must be 18 years old or over and UK residents, and up to £250,000 can be invested overall.
