DF Capital, a specialist bank, has launched a new one-year fixed savings account paying 4.74% interest – earning an “excellent” Moneyfacts rating.
Savers can launch the account with a minimum deposit of £1,000, and interest is paid on maturity.
Fixed-rate accounts add a layer of certainty to saving, enabling people to lock in an interest rate for a set time.
However, they typically come with additional restrictions, such as a limit on withdrawals, making them a better option for those who can commit their savings to a fixed period and don’t need immediate access to their funds.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week saw DF Capital launch a new One Year Fixed Rate Deposit. The account pays 4.74% on £1,000 investments and takes a competitive spot within the top tables compared to its peers.
“As is common in the fixed market, earlier access is not permitted, so this deal may only appeal to savers willing to lock away their cash to gain a guaranteed return.”
However, she added: “There is an option to make further additions for 14 days after the account is opened, which may be a further benefit for some.
“On assessment, this account earns an Excellent Moneyfacts product rating.”
Up to £250,000 can be invested overall, and withdrawals cannot be made until the account matures.
All eligible deposits with DF Capital, which serves over 13,000 customers, are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
While DF Capital may offer an appealing deal, it doesn’t quite top the table in the one-year fixed savings sector.
A new bank, Vida Savings, currently offers the top rate for one-year fixes, with an Annual Equivalent Rate (AER) of 4.77%.
Savers need a smaller minimum deposit of £100 to launch the account, and up to £85,000 can be invested overall. Interest can be paid monthly or annually, and withdrawals cannot be made until the account matures.
Online bank SmartSave falls just behind with an AER of 4.76%. This account is aimed at those with larger sums to invest, as it requires a minimum deposit of £10,000 to launch.
Up to £85,000 can be invested overall, and withdrawals are not allowed until the account matures on January 23, 2026. Interest is paid annually.
