With 12 consecutive Bank of England base rate increases, banks and building societies have been offering competitive interest rates to entice customers to bank with them.
SmartSave is among the bank providers increasing their rates giving savers the chance to get more for their money.
SmartSave is offering customers 5.43 percent on balances up to £85,000 and the rate is effective from June 14, 2023, and is fixed until the end of one’s product term.
Customers who can afford to lock their money away for a year could benefit from this highly competitive deal.
The SmartSave account can be opened and managed online, and funds need to be deposited within 14 days of opening.
Savers need a minimum deposit of £10,000 when opening the account.
Those with £10,000 in savings, would earn £543 in interest at the end of the one-year fixed term.
It should be noted that the Personal Savings Allowance allows higher-rate taxpayers to earn £500 a year in savings interest tax-free so they should be mindful of exceeding this limit as they will pay tax at their marginal rate.
Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “SmartSave has increased the rate on its One Year Fixed Rate Saver this week, which takes a prominent position in the market.
“Savers will find early access is not permitted, but they can make further additions for 14 days from account opening. On assessment, the account receives an Excellent Moneyfacts product rating.”
Money can’t be withdrawn from the account prior to the end of the fixed term.
Savers must be at least 18 years old and a UK resident subject to UK tax only, to open a savings account.
People can open and manage their savings account online at smartsavebank.co.uk.
If people can’t meet the minimum deposit value, then the OakNorth Bank 12 Months Fixed Term Savings Account pay 5.42 percent AER/gross on a minimum £1.
It can be opened and managed online or via phone, and withdrawals and early access aren’t allowed.
Savers need to fund the account within 14 days of opening it and they can open a joint account.
