Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Five-year fixed savings bonds reach 3.11%
Over recent weeks, we’ve seen an interesting battle for the top-spot of the five-year fixed rate bond table. Currently, Secure Trust Bank leads with its recently launched account, paying 3.11% from a minimum investment of £1,000. Accounts from Shawbrook Bank and Vanquis Bank follow closely behind, at 3.10%.
We have also seen providers competing for first place in the three and four-year fixed rate tables. For example, Shawbrook Bank’s recent rate increase (to 2.65%) on its three-year fixed term deal saw them jump to the top-spot.
Longer fixed-rate savings account now on offer
Traditionally, fixed-rate savings account were only available on a one to five-year term, but this is no longer the case as we are already seeing seven-year deals enter into the market place. FirstSave, Secure Trust Bank and Skipton BS all have accounts paying up to 3.52%.
And yesterday, Leeds Building Society launched a ten-year fixed-rate savings account – the longest and only one of it’s term currently available. Paying 4.00%, it’s also the highest paying bond on the market. But no earlier access or closure is permitted, so you must be confident you can commit to this long-term product from the outset.
Although it’s good to see banks competing for the top spot by offering savers better rates, it’s still worth remembering that tying up your money for such a long period may not always the best option as rates are still low and you could miss out on more attractive offerings if the interest rates increase over the the coming years.
Find more Best Rate products
- Best Rate savings accounts – to find the best instant, notice and one to five-year fixed rate accounts.
- Best Rate cash Isas – to find the best tax-free instant, notice or fixed rate cash Isa deals.
- Best Rate credit cards – to find the best cards to suit your requirements.
- Top unsecured personal loans – for borrowing £10,000 over 5 years or £5,000 over 3 years.
And finally… boost your savings
To find out if your savings account is paying a competitive interest rate, check out the Which? Savings Rate Booster tool and switch your account for a better deal if necessary.