Hodge Bank will increase rate of interest on financial savings account to ‘wonderful’ 5.39%
Hodge Bank has elevated the rate of interest on its three-year fastened savings account to five.39 %, incomes a Moneyfactscompare “excellent” score.
With interest rates fluctuating, fastened savers can provide some certainty to saving as these accounts allow prospects to lock within the charge on the time of opening.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, stated: “Hodge Bank has increased the rate on its Three Year Fixed Rate Bond this week, improving its position in the market.
“Now paying 5.39 percent on investments of £1,000, the deal may appeal to savers looking for a competitive return who are comfortable with locking their money away for the full three years as earlier access is not permitted, which should be carefully considered.”
Ms Eastell added: “There is also a monthly interest option which may entice those looking to supplement their income. Overall, the deal earns an Excellent Moneyfacts product rating.”
The account can solely be opened on-line by savers aged 18 or over, and as much as £1million could be invested total.
But whereas Hodge Bank could also be providing a extra “appealing” deal, it isn’t at the moment the highest charge available on the market. Al Rayan Bank is providing a market-leading 5.6 % Expected Profit Rate on its 36-month Fixed Term Deposit account.
The account requires a minimal deposit of £5,000 and revenue is paid quarterly. Instead of paying curiosity to savers, Al Rayan Bank, as an Islamic financial institution, invests prospects’ deposits in moral, Sharia-compliant actions to generate a revenue.
Profit charges are anticipated, nonetheless, the financial institution stated it has at all times paid at the least the revenue charge it has quoted to its prospects because it was based in 2004.
Up to £1million could be invested and withdrawals will not be permitted till the time period ends.
Placing simply behind is Zenith Bank’s Three Year Fixed Term Deposit with an AER of 5.5 %. The account can be opened with a minimal deposit of £1,000 and curiosity is paid on the anniversary.
Early entry shouldn’t be permitted and savers should be aged 18 or over to launch an account.
Commenting available on the market, Rachel Springall, a finance skilled at Moneyfacts, stated: “Fixed bonds and ISA rates have fallen across the board, which will be disappointing news to savers.”
November has seen a “clear downward trend” within the fastened market as all common fastened charges fell for the primary time since March 2021, Ms Springall stated.
She famous: “There have been sizeable month-on-month cuts not seen since 2020 and it is the first time that the average one-year fixed bond and ISA rates have fallen in over two years. There are expectations for interest rates to drop in the months ahead, so fixed savings rates could fall further before the year is over.”
However, she added: “There are still some providers enhancing their fixed rate savings deals, and challenger banks could go against the trend and increase their rates if they need to entice deposits to fund their future lending.
“Despite a slight dip in the choice of products, there are still many deals to choose from designed to suit different requirements.
“It is imperative savers take time to assess all the options available to them to find the right deal that suits their day-to-day needs and not just chase the best rate. To secure the best possible deal, savers will need to act quickly, as providers can control any spikes in demand with subsequent rate cuts and withdrawals.”