The Bank of England’s base rate rose to 3% after the last hike of 0.75 percentage points in November. In response to the ruling, many banks have passed on those savings to giving Britons the chance to get more for their money.
Union Bank of India (UK) Ltd offers 4.55% interest for 18 months on a fixed rate deposit.
Customers require a minimum of £1000 in savings and interest is calculated on closing balances at the end of each day and paid annually.
Moneyfacts.co.uk has given this account an “excellent” product rating, as the 4.55% interest rate places it as a “best rate” choice in its industry.
Britons are urged to shop around and get the best deals available to them.
READ MORE: Families on Universal Credit will get an extra £600 next year – new rates explained
Although it is now possible to earn more than 5% interest on savings, these accounts generally require people to tie up their savings for a certain number of years when it is only 18 month.
Commenting on the deal, Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Now paying a rate of 4.55%, the 18 month fixed rate deposit account sits comfortably in the top charts of rates in its sector and may encourage savers looking for a guaranteed return over the next 18 months.
“Savers will find early access and further additions are not permitted, so it would be wise to ensure they are happy with their initial deposit.
“After evaluation, the account receives an Excellent Moneyfacts product rating.”
DO NOT MISS
For easier access to cash, Brits could choose an easy-access account rather than a fixed-term account.
This could be good for storing an emergency fund as it is easily accessible.
Ms Springall continued: “Interest rates have continued to rise across the savings spectrum, and we have seen nine consecutive months of increases in all average rates for the first time in our records.
“The average easy access rate exceeded 1% for the first time in more than 10 years and fixed rate bonds saw their average shelf life fall to 26 days, the lowest figure since 2009.
“These highlights are evidence of the positive direction of the cash savings market, with further increases expected due to the Bank of England’s base rate hike.”
Although there is a wide range of different savings accounts that people can choose from to suit different needs and requirements, easy access savings accounts tend to be one of the simplest of them all.
Moneyfacts.com ranked Earl Shilton BS’s Progress account top of the list with an annual equivalent rate (AER) of 2.85%.
Up to six withdrawals are allowed per year to qualify for the 2.85% bonus rate.
If further withdrawals are made, interest will be reduced to 1.8%.
