Savings deals of the week, 23 January 2014Which? experts round up the best savings deals
23 January 2014
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 3.25%
Over recent weeks, we've seen an interesting battle for the top-spot of the five-year fixed rate bond table. Currently, FirstSave and United Bank UK lead with accounts paying 3.25% - the highest rate offered on a five-year fixed term account for more than a year. Aldermore Bank follows closely behind, paying 3.20% on balances from £1,000.
We've also seen providers competing for first place in the four-year fixed rate table. For example, Vanquis Bank's recent rate increase (to 2.91%) on its four-year fixed term deal saw it jump to the top-spot.
If you prefer to lock into a shorter term, United Bank UK is offering savers 1.90% on its one-year fixed-rate bond. Accounts from Britannia and the Post Office are not far behind, at 1.84% and 1.82% respectively.
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 with seven-year deals available in the market place. FirstSave and Secure Trust Bank offer accounts paying up to 3.52%. However, early access or closure isn't 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.