Savings provider offers ‘excellent’ 5.21% interest with 5-figure minimum | Personal Finance | Finance
SmartSave is offering a new interest rate of 5.21 percent on its one-year fixed savings account, earning an “excellent” Moneyfactscompare rating.
While this reflects a marginal rate reduction, the account is still placing competitively in its sector.
The deal is aimed at savers with larger sums to invest as it requires a five-figure minimum deposit of £10,000 to open.
However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £521 in one year.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week SmartSave has reduced the rate on its One Year Fixed Rate Saver.
“Despite this, it maintains a competitive position within its sector. The account pays 5.21 percent, for those able to invest a minimum of £10,000.”
However, Ms Eastell noted: “Savers should note that earlier access is not permitted, but they may be happy to see that further additions can be made for 14 days from the account opening.
“Overall, the account receives an Excellent Moneyfacts product rating.”
While SmartSave may be offering one of the most competitive rates, it isn’t quite topping the table for one-year fixed savings accounts.
At the time of writing, My Community Bank takes the lead with an Annual Equivalent Rate (AER) of 5.26 percent.
The account can be opened with a minimum deposit of £1,000 and interest is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not allowed until the term ends.
Mizrahi Tefahot Bank Ltd, which is offered through Raisin UK, places just behind with an AER of 5.25 percent.
The account can be opened with a minimum deposit of £1,000 and interest is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not allowed until the term ends.
Commenting on the market, Lucinda O’Brien, Money.co.uk’s savings expert said the number of high-interest-paying savings accounts still available is “good news”.
Ms O’Brien said: “The top interest rates on savings accounts remain stable for another week, with providers still offering rates above five percent. There are still plenty of competitive deals available in the market.”
However, she noted: “With a new Government now in place, things could change, so it’s important to compare deals now to avoid missing out.”
