Bank increases rate on 1-year fixed savings to ‘excellent’ 5.68% – deal ‘sits above peers’ | Personal Finance | Finance

With 13 consecutive Bank of England base rate increases, banks and building societies have been offering competitive interest rates to entice customers to bank with them.

SmartSave is among the bank providers increasing their interest rates giving savers the chance to get more for their money.

SmartSave is offering customers 5.86 percent on balances up to £85,000.

Customers who can afford to lock their savings away for a year could benefit from this “excellent” deal.

SmartSave account can be opened and managed online, and funds need to be deposited within 14 days of opening.

Savers need a minimum deposit of £10,000 when opening the account.

Those with £10,000 in savings, would earn £586 in interest at the end of the one-year fixed term.

It should be noted that the Personal Savings Allowance allows higher-rate taxpayers to earn £500 a year in savings interest tax-free so they should be mindful of exceeding this limit as they will pay tax at their marginal rate.

Commenting on the deal, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “This week, SmartSave has increased the rate on its One Year Fixed Rate Saver, which takes a prominent position in the market.

“Paying a rate of 5.86 percent, the deal sits above many of its peers and may entice savers looking for a guaranteed return over the next year if they have a minimum of £10,000 to invest.

“Savers will find early access is not permitted, but they can make further additions for 14 days from account opening.

“On assessment, the account receives an Excellent Moneyfacts product rating.”

Money can’t be withdrawn from the account before the end of the fixed term.

Savers must be at least 18 years old and a UK resident subject to UK tax only, to open a savings account.

People can open and manage their savings accounts online at smartsavebank.co.uk.

If people can’t meet the minimum deposit required, they can still get 5.85 percent with Atom Bank One Year Fixed Saver.

Britons can start saving with just £50.

The maximum someone can deposit into the account is £100,000 and they can open and manage this saver on the Atom Bank app.