Market Harborough Building Society has increased the interest on its two-year fixed rate savings account to 4.61 percent, earning an “excellent” rating from Moneyfactscompare.
The account is aimed at savers with larger sums to invest as it requires 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 £943.25 over the course of two years.
Fixed-rate savers can be beneficial during the current period of falling rates, as these enable people to lock in an interest rate for a set length of time.
However, they typically impose stricter withdrawal limits on customers, meaning savers should be comfortable investing money without needing to access it during the account term.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Market Harborough Building Society has increased the rate on its two-year fixed term bond this week.
“The account pays a market-leading rate for its term, paying 4.61 percent yearly but does require a substantial £10,000 opening investment amount.”
Ms Eastell noted: “As is the case with many fixed rate bonds, earlier access is not permitted, however, savers can make further additions for 10 days from the account opening.
“On assessment, this account receives an Excellent Moneyfacts product rating.”
While Market Harborough Building Society may be offering a more attractive rate, competition doesn’t fall far behind.
Atom Bank’s Two Year Fixed Saver offers an Annual Equivalent Rate (AER) of 4.6 percent. Savers need a smaller minimum deposit of £50 to launch the account and up to £100,000 can be invested. Interest is paid on the anniversary of opening and withdrawals are not permitted.
JN Bank’s Fixed Term Savings Account also offers an AER of 4.6 percent. Savers need to invest a minimum deposit of £100 and interest is paid on the anniversary of opening. Up to £500,000 can be invested and withdrawals are not permitted until the term ends.
