While interest rates fluctuate, mounted savers allow individuals to lock within the fee supplied on the time of opening an account - including one other layer of certainty to saving.

Fixed savings accounts additionally provide a few of the highest rates of interest accessible in the marketplace, and Britons are being urged to not “hesitate” to modify savers if their present financial savings account isn’t maintaining. This comes as Shawbrook analysis exhibits many are nonetheless paying into accounts providing lower than 2.5 %.

Allica Bank is at present taking the highest spot for one-year savers with its 12-Month Fixed Term Savings Account (Issue 40), providing an Annual Equivalent Rate of 5 %.

The account could be opened on-line with a minimal deposit of £10,000 and curiosity is calculated every day and utilized to the stability yearly.

Savers have to be 18 years outdated or over and UK residents, and as much as £250,000 could be invested general. However, like with many mounted fee financial savings accounts, withdrawals can't be made through the course of the time period.

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Commenting in the marketplace, Lucinda O’Brien, private finance skilled at Money.co.uk, stated: “Although there are some market-leading rates of interest for present clients searching for an everyday saver or on the spot entry financial savings account, you received’t discover higher charges in fixed-rate bonds as the highest offers are open to everybody.

“There are some incredible offers accessible to present clients, so it’s at all times worthwhile exploring what your financial institution is at present providing.

"But remember, if their savings accounts don’t fit the bill, don’t hesitate to look elsewhere as providers are constantly battling to get your attention.”

Placing just behind Allica Bank with a competitive one-year fixed saver is Al Rayan Bank with an Expected Profit Rate (EPR) of 4.95 percent on its 12-month Fixed Rate Deposit account.

The bank operates under Shariah principles, which means people earn profit rather than interest on their savings.

Savers will need a minimum deposit of £5,000 to invest and profit is calculated and credited on the last working day of each calendar month. Withdrawals and early closure are not allowed.

For savers who have a smaller deposit to invest, OakNorth Bank’s Fixed Term Savings Account offers an AER of 4.92 percent and can be opened with just £1.

Interest is calculated daily and applied to the balance at maturity, and up to £500,000 can be invested in the account overall.

Withdrawals are not permitted throughout the term unless at the bank’s discretion. Savers must be UK residents aged over 18 to open the account.