Close Brothers Savings has increased the interest rate on its one-year fixed account to 5.26 percent, earning an “excellent” Moneyfacts rating.
The account is aimed at savers with larger sums to invest as it requires a minimum deposit of £10,000 to open.
However, more sizeable returns can be expected. To give an example of the interest the savings pot can amass at its current rate, a £10,000 deposit is estimated to earn £526 over a year.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Close Brothers Savings has increased the rate on its One Year Fixed Rate Bond, now paying 5.26 percent, improving its overall position within the market.
“Savers will need to invest a minimum of £10,000 and further additions can be made for 10 days from the account opening; however, they should note that early access is not permitted.”
She added: “Overall, this deal earns an Excellent Moneyfacts product rating.”
Savers must be UK residents aged 18 and over to open the account, and up to £2million can be invested overall.
While Close Brothers Savings may offer the top interest rate, the competition doesn’t fall far behind.
Oxbury Bank’s Personal One Year Bond Account (Issue 34) also offers an Annual Equivalent Rate (AER) of 5.26 percent.
Savers aged 18 and over can open the account with a smaller deposit of £1,000 and up to £500,000 can be invested overall.
Interest is paid on the anniversary of opening and withdrawals are not permitted.
SmartSave places just behind with its One Year Fixed Rate Saver paying an AER of 5.23 percent.
Savers aged 18 and over need a minimum deposit of £10,000 to invest and interest is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not permitted.
Commenting on the market, Myron Jobson, senior personal finance analyst at interactive investor said while the Bank of England’s Base Rate hasn’t changed in a while, mortgage and savings rates have been fluctuating.
He continued: “When it comes to savings rates, the top deals continue to disappear rapidly. The simple message for savers is: act quickly to secure the best deals before they vanish.
“High interest rates continue to have ripple effects on personal finances. Therefore, it remains important to stay on top of your finances and make the necessary adjustments to maintain financial resilience.”
