Bank unveils range of market-leading savings accounts with 'competitive' rates

Recognise Bank has unveiled fixed rate savings accounts that now sit at the top of the market, offering savers 4.85 per cent AER on both one-year and two-year terms.

The accounts require a minimum deposit of £1,000, with an upper limit of £250,000.

Customers have flexibility in how they receive their returns, with the option to collect interest either monthly or annually.

Payments can be directed into a separate savings account or transferred straight to a nominated UK bank account.

As a fully authorised and regulated institution, the bank provides FSCS protection covering deposits up to £120,000.

Richard Burrows, Treasurer of Recognise Bank, said: "Offering competitive rates to savers is critical to meeting the financial needs of our customers.

"The same rate of 4.85 per cent, for both one and two years, gives customers the choice of maturity and invites them to decide for themselves for how long they wish to lock in these competitive rates."

The identical rate across both terms allows savers to select whichever duration best suits their circumstances without sacrificing returns.

Beyond these fixed rate products, the bank also provides easy access and notice savings accounts for those seeking greater flexibility with their funds.

Moneybox has also boosted its Cash ISA offering, with the account now paying a market-leading 4.75 per cent AER.

The account can be opened with just £500, making it accessible to a wider range of savers.

Interest is paid monthly, which may appeal to those looking to supplement their regular income.

However, savers should be aware that the headline rate includes a 1.30 per cent AER bonus that applies only for the first 12 months.

The promotional rate is restricted to new customers, meaning existing account holders will not benefit from the enhanced returns.

Withdrawal restrictions apply to the Moneybox account, with savers permitted only three penalty-free withdrawals per year.

Making four or more withdrawals triggers a substantial rate reduction, dropping the return to just 0.75 per cent AER.

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, cautioned that savers must review their arrangement once the bonus period concludes.

"However, savers should note this includes a generous 1.30 per cent AER bonus for 12 months, so it is important that they review their deal once this expires," she said.

Despite these conditions, the account has earned an Excellent Moneyfacts product rating, with additional deposits permitted at any time.