While the Bank of England continues to hike its Base Rate to help stem inflation, high street banks and building societies have been boosting rates on their own savings accounts, offering savers much higher returns. Allica Bank is now topping the leaderboard of one-year fixed savings accounts.
Fixed-rate accounts help add another level of certainty to savings, as these accounts enable savers to secure an interest rate for a set length of time.
This means the bank or building society cannot change the interest rate during the term of the bond, which works well for account holders hoping to save long-term.
Described as an account that has “shaken up the one-year fixed rate bond sector this week” by Moneyfacts, Allica Bank’s 12-month Fixed Term Savings Account (Issue 33) is currently offering an Annual Equivalent Rate (AER) of 4.24 percent.
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Savers can open this account with a minimum deposit of £1,000 and interest is calculated daily and applied at maturity.
Similar to SmartSave, early withdrawals are also not permitted unless in exceptional circumstances, which is at the bank’s discretion.
DF Capital’s One Year Fixed Rate Deposit (Issue 7) is offering savers an AER of 4.17 percent.
Interest is calculated daily and paid gross in full on the maturity date of the account, and no withdrawals, transfers or closures are permitted during the term.
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