Close Brothers Savings has launched a new one-year fixed account paying 4.58% interest, earning an “excellent” Moneyfacts rating.
The account is aimed at people with larger sums to invest, requiring a minimum deposit of £10,000 to open.
However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £458 over the course of a year.
Fixed-rate accounts enable savers to lock their money away at a fixed interest rate for a set period. They’re best for those who can afford to leave their money untouched for a specific term and want guaranteed returns.
Close Brothers Savings’ new deal takes a “competitive” position in the fixed savings market, according to Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk.
Ms Eastell said: “Close Brothers Savings has launched a handful of fixed bonds and cash ISAs this week. Its new One Year Fixed Rate Bond takes a competitive place in the market when compared against its peers, paying 4.58%.
“Savers will need to invest a substantial minimum amount of £10,000.”
However, she noted that further additions can be made for 10 days from the account opening, which “may be a bonus”, but much like other bonds, earlier access is not permitted.
Ms Eastell added: “Overall, this deal earns an Excellent Moneyfacts product rating.”
While Close Brothers Savings may be offering an appealing deal, it isn’t quite topping the one-year fixed-rate market.
Castle Community Bank offers an Annual Equivalent Rate (AER) of 4.67%. Savers need a minimum deposit of £1,000, and interest is paid on maturity. Up to £85,000 can be invested overall, and withdrawals are not permitted.
SmartSave’s One Year Fixed Rate Saver is also offering a competitive AER of 4.66%. Like Close Brothers Savings’ account, savers need a minimum deposit of £10,000 to launch and interest is paid on maturity. Up to £85,000 can be invested, and access is not allowed until the account matures.
More than 30 banks and building societies have cut interest on savings accounts following the Bank of England base rate cut last week.
New figures from Moneyfactscompare show these lenders have reduced rates on at least one product, applying pressure to savers to snap up the better deals while they last.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s so disheartening to see savings rates chopped in the last few days, but it just proves why savers are at the mercy of base rate cuts.
“Not even challenger banks have been able to escape making cuts as the market sentiment for lower interest rates has taken charge. It’s imperative these institutions act quickly to reassess their market positions and adjust rates so they don’t sit too far ahead of their peers.”
Ms Springall added: “Now is an ideal time for savers to consider grabbing a fixed rate deal so they can get a guaranteed return on their cash. They may wish to act soon, as we have had a variety of providers cutting fixed rates across bonds and ISAs over the past week, some of which were market leading.”
