HBL UK has raised the interest on its one-year fixed savings account to five percent, earning an “excellent” Moneyfactscompare rating.
Savers need a minimum deposit of £1,000 to launch the account and interest is paid on maturity.
Fixed savings accounts are becoming an increasingly popular option while rates fluctuate, as these bonds allow savers to lock in the interest offered at the time of opening.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, HBL Bank UK has increased the rate on its One Year Deposit with Raisin UK, now paying five percent.
“The account takes a competitive position when compared against other one-year fixed bonds.
“Savers must have a minimum investment of £1,000, however, it would be wise to note that earlier access and further additions are not permitted, so investors may need to ensure they are happy with their initial deposit.
“Overall, this deal earns an Excellent Moneyfacts product rating.”
Up to £85,000 can be invested in the account and savers must be aged 18 and over. HBL Bank, previously Habib Bank Limited, was established in the UK in 1961.
But while HBL UK may be offering a more competitive interest rate, it isn’t currently taking the top spot for one-year fixed rate savings accounts.
The United Bank of India, with a 5.25 percent Annual Equivalent Rate (AER), is topping the table for one-year fixes.
Savers need a minimum deposit of £5,000 to launch the account and interest is paid on maturity. Up to £340,000 can be invested and withdrawals cannot be made until the term ends.
Mizrahi Tefahot Bank Ltd’s One Year Fixed Term Deposit, offered through Raisin UK, places just behind with an AER of 5.16 percent.
A minimum deposit of £1,000 is required to launch the account and interest is paid on maturity. Up to £85,000 can be invested overall and access is not permitted until the account matures.
Ms Eastell said: “It is crucial savers keep on top of the changing market and make the switch to ensure they are not getting a raw deal, especially as we have seen some of the top rate deals drop below five percent. It would not be too surprising to see more providers adjusting their rates in reaction.
“Since the previous inflation announcement, fixed rates have faced further reductions, so it may be wise for savers to begin considering locking into an interest rate while the majority continue to pay competitive returns.”
