High street banks and building societies are hiking the interest rates of their savings accounts to new highs as savers look for better deals.
Moneyfactscompare.co.uk has complied its "Pick of the Week" list, highlighting the best savings interest rates on the market.
One of the accounts from Cynergy Bank is offering a fixed bond account with a 4.42 per cent rate, giving customers a “competitive return”.
The bank’s one-year fixed bond has an interest rate of 4.42 per cent and a term of 12 months.
Financial experts are urging people to take advantage of the hiked rate
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For this particular savings product, the minimum opening amount is £10,000, while the maximum investment is £1million.
While access to the account is not permitted, further additions are allowed 14 days from its opening.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, explained why the bank’s latest offering is a boon for savers: "This week Cynergy Bank has increased rates on its range of fixed bonds, which includes the one-year fixed option that now pays 4.42 percent.
“The deal sits in a prominent position against other bonds that are fixed for 12 months and may entice savers who are looking for a competitive return and are happy to lock their cash away for the next year.
"As is common with a fixed bond, no earlier access is permitted, and investors will need a minimum of £10,000 to deposit to be eligible."
On top of this, the finance expert is recommending the 18-month fixed-rate ISA from Santander which pays an interest rate of 4.25 per cent.
The term on the savings account lasts until October 1 2024 and has a minimum opening amount of £500.
As it is an ISA account, the maximum investment amount for Santander’s product is the ISA allowance of £20,000.
Access to the account is permitted but subject to account closure and 120 days’ loss of interest penalty.
Santander are amongst those hiking their interest rates
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Moneyfactscompare’s savings expert shared why this particular account from the high street bank is one people should take advantage of.
“The deal pays a rate of 4.25 per cent yearly and may appeal to savers who want to invest over the shorter-term and those looking to use their ISA allowance before the new tax year begins.
“This ISA permits savers to make transfers in for 14 days from account opening, but savers will be subject to 120 days’ loss of interest penalty and closure of the account should they wish to access their money early" said Rachel Springall.
The minimum applicant age for the fixed-rate ISA is 16.
