SmartSave is offering a high 5.16 percent on its one-year fixed savings account, earning an “excellent” Moneyfactscompare rating.
While the interest rate was marginally reduced this week, the account still provides lucrative returns for savers with larger amounts to invest. A minimum deposit of £10,000 is required and the pot is estimated to earn £516 over a year at its current rate.
Commenting on the deal, Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said: “This week, SmartSave has reduced the rate on its One Year Fixed Rate Saver.
“Despite the decrease, the account continues to pay an attractive 5.16 percent, for investors able to contribute a minimum of £10,000.
“As is the case with many fixed bonds, earlier access is not permitted, however, savers may be happy to see that further additions can be made for 14 days from the account opening.”
Ms Eastell added: “Overall, the account receives an Excellent Moneyfacts product rating.”
Up to £85,000 can be invested overall and interest accrues daily and is paid yearly.
SmartSave is a trading name of Chetwood Financial Limited and is regulated by the Financial Conduct Authority (FCA).
But while SmartSave may be offering a particularly appealing rate, it isn’t currently topping the market of one-year fixed savings accounts.
Allica Bank’s 12-Month Fixed Term Savings Account (Issue 58) takes the lead with an Annual Equivalent Rate (AER) of 5.23 percent.
The account can also be launched with a minimum deposit of £10,000 and up to £250,000 can be invested overall.
Interest is paid on the anniversary of the account opening and further additions can be made for 14 days.
For savers with smaller figures to invest, Charter Savings Bank places just behind with an AER of 5.21 percent. A minimum deposit of £5,000 is required to launch the account and interest is paid on the anniversary of opening.
Meanwhile, MBNA offers a competitive 5.2 percent AER on a minimum deposit of £1,000. Up to £750,000 can be invested and interest is paid on maturity.
Commenting on the market, Lucinda O’Brien, Money.co.uk’s savings expert, said: “Last week, the Bank of England decided to hold interest rates at 5.25 percent as a push towards its two percent inflation target.
“This is the highest base rate we’ve seen since 2008 and it hasn’t changed since last August.”
However, she noted: “The good news for savers is that the market has remained competitive, with many providers keeping their rates stable.
“Top rates for easy access, notice, fixed and ISAs remain above five percent, so there are still plenty of deals for savers to maximise their earned interest.”
