Close Brothers Savings has recently announced an increase in the interest rate on its one-year fixed account to 5.26 percent, receiving an “excellent” Moneyfacts rating. The account is tailored for savers who are looking to invest larger sums of money, as it requires a minimum deposit of £10,000 to open.
This latest move has significantly improved the savings provider’s “overall position” within the market. According to Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, the increase in the interest rate on the One Year Fixed Rate Bond has enhanced Close Brothers Savings’ standing in the market. The positive change has propelled the product to an “Excellent” Moneyfacts product rating.
While the account may require a substantial initial investment, the potential returns are quite appealing. For instance, a deposit of £10,000 is estimated to earn £526 over the course of a year at the current interest rate.
It is important to note that the account is only available to UK residents aged 18 and over, with a maximum investment allowance of up to £2 million. Additionally, this one-year fixed account does not allow for early access to funds.
Despite having the top interest rate, Close Brothers Savings faces tough competition from other financial institutions in the market. Oxbury Bank’s Personal One Year Bond Account (Issue 34) also offers an Annual Equivalent Rate (AER) of 5.26 percent, with a lower minimum deposit requirement of £1,000. However, the maximum investment cap stands at £500,000.
Furthermore, SmartSave is not far behind, offering a One Year Fixed Rate Saver with an AER of 5.23 percent, a minimum deposit of £10,000, and a maximum investment cap of £85,000.
According to Myron Jobson, senior personal finance analyst at interactive investor, there has been fluctuation in mortgage and savings rates despite the Bank of England’s Base Rate remaining unchanged. Jobson emphasized the importance of acting promptly to secure the best deals before they vanish, particularly in the current climate of rapidly disappearing high interest rate options. Staying on top of one’s finances and making necessary adjustments have also been highlighted as key factors in maintaining financial resilience in light of these market changes.