Oxbury Bank earned an “excellent” rating with the launch of a new fixed savings account paying 4.4% interest. The interest rate is fixed for two years, and savers can open an account with a minimum deposit of £1,000.
Fixed-rate accounts enable savers to lock their money away for a set period of time at a fixed interest rate, adding some certainty to saving while rates fall. They work best for those who can afford to leave their money untouched for a specific term, as withdrawals are typically not allowed. Commenting on Oxbury Bank’s new deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Oxbury Bank has launched a new range of Personal Bond Accounts.
“The two-year option takes a competitive position in the market when compared against its peers, paying 4.40% on its anniversary. Savers with at least £1,000 to deposit may find this an enticing deal as they can receive guaranteed returns for the next two years.”
However, like with most fixed-rate savings accounts, Ms Eastell noted: “Savers should be aware that earlier access is not permitted, but further additions are for 14 days via a nominated account.”
She added: “Overall, the deal earns an Excellent Moneyfacts product rating.”
Savers must be aged 18 and over to open the account, and up to £500,000 can be invested overall.
What else is out there?
While Oxbury Bank may be offering a competitive deal, it isn’t quite topping the table in the two-year fixed rate savings sector.
GB Bank places just ahead with an Annual Equivalent Rate (AER) of 4.43%. Savers can launch the account with a minimum deposit of £1,000, and up to £100,000 can be invested overall. Interest is paid on the anniversary, and withdrawals are not permitted until the account matures.
Birmingham Bank falls just behind with an AER of 4.42%. To launch this account, savers must deposit a larger amount of £5,000, and interest is paid on the anniversary. Up to £250,000 can be invested overall, and withdrawals are not allowed.
Cyrnergy Bank joins Oxbury with an AER of 4.4%. Savers can launch the account with a minimum deposit of £1,000, and up to £1million can be invested overall. Interest is paid on the anniversary, and withdrawals are not allowed.
