The One Year fixed bond offers savers 6.15 percent gross/AER on balances up to £250,000.
Following 13 consecutive base rate rises, banks and building societies have been extending the rise on their savings accounts to entice savers to switch.
With inflation sitting at 7.9 percent, Britons are encouraged to get the best rate possible on their savings.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Vanquis Bank has increased the rate on its one-year fixed bond this week, improving its position within the sector.
“Now paying a rate of 6.15 percent on its anniversary, the deal sits towards the top end of the market and may appeal to savers who are prepared to lock their cash away over the shorter term.
“Those looking to supplement their income may find the monthly interest option appealing.
“Overall, this account receives an Excellent Moneyfacts product rating.”
The minimum deposit amount is £1,000 and no withdrawals can be made during the 12-month term.
If someone deposited a total of £1,000 only, at the end of the term they would have a total balance of £ 1,061.50.
Interest is paid on the anniversary of the date someone initially funded their account.
The account can be opened with an online application.
For existing customers, they can log in to their Vanquis Bank Savings account online.
Savers can manage their account online, by phone and by post.
If customers are willing to lock their money away for longer, they can get up to 6.20 percent on Vanquis two year fixed bond.
Vanquis Bank offers the top two-year fixed rate of 6.2 percent (min £1,000) and pays interest monthly, annually or at maturity.
Britons are warned however with a two-year fix, the tax implications of how people take interest are important.
Accounts paying interest ‘at maturity’ do so as a lump sum, which could take someone over their personal savings allowance (PSA) for the year it matures – meaning they’d pay some tax on the interest.
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