Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
The battle for the top spot in the fixed-rate savings account market continues this week with the introduction of two new fixed term deals.
Fixed term rates continue to rise
On Tuesday FirstSave launched a two-year and a five-year fixed-rate savings bond paying 2.35% and 3.15% respectively. The two-year deal went straight to the top of the table and the five-year account shares the top spot with Aldermore Bank.
If you invested £10,000 in FirstSave’s two-year fixed-rate account, you would earn £380 in interest (after basic-rate tax) and, if you invested the same amount in its five-year deal, you would earn £1,325.
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 a long period may not always be the best option. Rates are still low and you could miss out on more attractive offerings if the interest rates increase over the next few years.
Best fixed rate savings accounts on the market
As savings rates are volatile, we highlight the top fixed-rate savings accounts for you:
If you prefer to lock into a shorter term, Shawbrook Bank is offering savers 1.95% on its one-year fixed-rate bond. FirstSave, The Post Office and Tesco Bank follow closely behind, all paying 1.90%.
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.