Savings interest rates rise to nearly 6%

Savers are being urged to take advantage of savings interest rates that are rising close to six percent at some financial institutions.

Banks and building societies have been taking advantage of the wave of rate increases over the past year which they have passed on to their customers.

Central banks, including the Bank of England and the Federal Reserve, have hiked interest rates to control the impact of soaring inflation.

While this has been detrimental to borrowers, savers have benefited thanks to this decision-making.

With signs that central banks could be pausing interest rate hikes for the foreseeable future, experts from Moneyfacts are sharing the top savings accounts customers should consider.

Read more… Fixed energy deals trap warning as bill payers may get better deal if they wait

Currently, JN Bank is offering savers a 5.97 percent rate on its Three Year Fixed Term Savings Account.

This particular product has a minimum operating balance of £1,000 and a maximum investment of £100,000.

Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, shared: “Paying a rate of 5.97 percent gross, this scoops the lead position in the top 10 in its respective sector.

“Those comfortable with locking away their investments for a guaranteed return on their savings may well find this an attractive option.

“Savers may be glad to hear up to 11 additional deposits can be made after initial funding for 14 days from account opening.”

As well as this, Monument Bank is currently providing customers with a favourable rate of 5.10 percent gross / 5.22 percent AER payable monthly on its 35-day notice account.

This account has a minimum applicant age of 18 and can be managed using the financial institution’s mobile app.

However, it should be noted that savers will need to deposit a sizable amount of money initially in order to access this savings product.

Ms Eastell added: “It is available to those who can invest £25,000 upfront, paying a rate of 5.10 percent gross / 5.22 percent AER.

“This account may be an attractive option for savers looking to supplement their income and happy to give notice to access their funds.

“However, they must note that the initial investment should be made within the first 14 days of account opening or it may automatically close. The account secures an Excellent Moneyfacts product rating.”