Close Brothers Savings has boosted its position on the table with an interest rate increase to 6.05 percent on its Two Year Fixed Rate account.
The savings account, which has now earned an “excellent” rating from Moneyfactscompare.co.uk, is aimed at savers with more sizeable sums to invest as it requires a minimum deposit of £10,000 to open it.
But 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 £605 over the course of a year.
Interest accrues daily and is paid annually and at the maturity of the account and withdrawals are not permitted. This means savers should be comfortable with leaving the money in the account without needing to dip in.
Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Close Brothers Savings has increased the rate on its Two Year Fixed Rate Bond, which now pays 6.05 percent.
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“The deal has improved its position within its sector and may well attract savers who are prepared to lock away their cash for a guaranteed return.”
Ms Springall added: “Savers need £10,000 to invest but they can make further additions for 10 days from account opening. Overall, the deal earns an Excellent Moneyfacts product rating.”
But while Close Brothers Savings may be offering a more attractive deal, it isn’t currently taking the top spot for two-year fixed savers. FirstSave is currently offering an Annual Equivalent Rate (AER) of 6.15 percent.
The account can be opened with a minimum of £1,000 and interest can be paid monthly or annually. Up to £2million can be invested overall and withdrawals are not allowed throughout the term.
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Following close behind is Investec Bank tops with its Fixed Term Deposit Account offered through Raisin UK an AER of 6.06 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 in the account overall and withdrawals are not permitted.
For those looking for an account with a smaller opening deposit requirement, Atom Bank’s Two Year Fixed Saver is offering an AER of 6.05 percent – and savers can get started with £50.
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Interest is paid on the monthly or annual anniversary and up to £100,000 can be saved. The account can also only be launched using the Atom Bank app and savers must be aged 18 or over.
Withdrawals are not allowed until the account matures, which will be based on the account opening date.
To find out more about the top interest rates for cash ISAs, easy access, regular accounts, and additional fixed term bonds this week, click here.
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