Bank launches ‘appealing’ fixed savings account with bumper 4.78 percent rate | Personal Finance | Finance
GB Bank has launched a new savings account offering an “appealing” 4.78 percent interest rate.
The account is available through Raisin UK and the interest rate is fixed for three years.
Savers need a minimum deposit of £1,000 to get started, and up to £85,000 can be invested.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, GB Bank has launched a new three-year Fixed Term Deposit on the Raisin UK platform.
“The deal pays an appealing 4.78 percent to savers who have a minimum of £1,000 to invest and are looking to receive a guaranteed return.
“As is common in the fixed market, earlier access and further additions are not permitted so it is important that investors are comfortable with locking their cash in for the full term.”
Ms Eastell added: “The deal secures a prominent position in our top tables and earns an Excellent Moneyfacts product rating.”
Fixed bonds help add another layer of certainty to saving, as these accounts enable people to lock in the interest rate offered at the time of opening.
Fixed savers also typically boast some of the highest interest rates on the market, however, they do come with a few more limitations, such as stricter withdrawal rules. This makes them better options for those intending to save long-term without needing access to their money.
While GB Bank’s new account may be offering a competitive state for three-year fixes, it doesn’t quite take the top spot.
Birmingham Bank offers an Annual Equivalent Rate (AER) of 4.81 percent.
The account can be launched with a minimum deposit of £5,000, up to £250,000 can be invested overall, and interest is paid on the anniversary of opening. Withdrawals are not permitted until the term ends.
Hodge Bank is also offering an AER of 4.81 percent on its Three Year Fixed Rate Bond. Savers need a minimum deposit of £1,000 to launch the account and up to £1million can be invested overall.
Interest is paid on the anniversary of the account opening and withdrawals are not permitted until maturity.
For savers with larger deposits to invest, Close Brothers Savings falls just behind with an AER of 4.8 percent.
The account can be launched with a minimum deposit of £10,000 and up to £2million can be invested overall. Interest is paid yearly and withdrawals are not permitted until the term ends.
