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As the cost of living crisis continues, Britons are urged to get the most out of their savings.
SmartSave’s 1 Year Fixed Rate Saver has been rated the best fixed savings account by experts in the field.
Customers can benefit from 5.16 percent on savings up to £85,000.
The rate is effective from January 17, 2024 and is fixed until the end of one’s product term.
If someone deposited £10,000, they could gain interest of £516, by the end of the 12 month term.
Customers must be at least 18 years old and a UK resident subject to UK tax only, to open a savings account.
The minimum amount that must be deposited in the savings account is £10,000. The maximum total amount that may be deposited in the savings account is £85,000.
Savers can open and manage their savings account online at www.smartsavebank.co.uk. Money cannot be withdrawn before the end of the fixed term.
Lucinda O’Brien, Money.co.uk’s savings expert shared the range of savings products available with the highest interest rates.
She said: “Interest rates on fixed-rate accounts remain just above five percent, with SmartSave still at the top with its one-year fixed at 5.16 percent , closely followed by State Bank of India UK which has a two-year fixed at five percent.
“The easy access market is also offering similar rates with the Coventry Building Society Triple Access Saver at 5.15percent.”
“If you are looking for the best rate in the market (not including deals for existing customers), then notice savings accounts remain competitive. Vanquis’s 90 day notice account has an interest rate of 5.50 percent, which exceeds both fixed-term and easy access accounts.”
A notice savings account allows savers to access their money, but they have to give notice before it’s released – so in this case that would be 90 days.
This type of account is worth exploring if one doesn’t need to access their money immediately, but they are still keen to maximise the interest on their savings.
With interest rates being held by the Bank of England at 5.25 percent, and expectations that the next movements will be down, savings rates have been falling.
This has a knock-on effect on what other banks charge their customers for loans such as mortgages, as well as the interest they pay on savings.
Individual banks and building societies have been under pressure to pass on higher interest rates to customers.
There are some good deals on the market, so analysts say that customers should shop around, as many may be in account accounts paying little or no interest.