Melton Building Society has launched a brand new fastened savings account boasting a 5.5 % rate of interest in an effort to stay “competitive” available in the market.

With a charge locked in till December 17, 2025, individuals investing can open an account with the Leicestershire-based supplier with a minimal deposit of £5,000.

Commenting on the brand new deal, Jamie Hyland, head of product at Melton Building Society, mentioned: “It is important that we maintain a strong savings proposition for our customers, which is why we're launching another competitive product so shortly after the withdrawal of our table-topping fixed rate account.

“This, in addition to further increases to our variable savings accounts on August 1, ensures that we have a variety of savings products available to cater for the various needs of our customers, with increasing rates dependent on the access to funds required and tax treatment.”

Interest, which is payable yearly on March 31, may be added to the account, transferred to a different linked checking account or transferred to an current Melton financial savings account.

To present an instance of what the pot can amass, primarily based on the present charge of curiosity, those that simply deposit £5,000 on this account will finish the time period with £5,676.60

The account is for UK residents aged 16 or over and as much as £250,000 may be held within the account general. Withdrawals will not be permitted all through the time period.

However, it must be famous that this account is “limited” and deposits might be accepted till October 1, 2023, or till the product is withdrawn, whichever is later.

But whereas Melton BS could also be providing a horny deal, this nonetheless isn’t at present the market-leading rate of interest supplied for two-year fixes.

Recognise Bank is at present topping the desk with an Annual Equivalent Rate (AER) of 6.1 %.

The account may be launched on-line with a minimal deposit of £1,000 and as much as £85,000 may be invested general. Savers can select to obtain curiosity both month-to-month or yearly, and like Melton, withdrawals will not be permitted all through the time period.

Cynergy Bank’s Fixed Rate Bond follows shut behind an AER of 6.07 % on financial savings of as much as £1million.

The account may be opened with a minimal deposit of £1,000 and curiosity is calculated each day and paid yearly.

Savers should be aged 18 or over and much like the remaining, withdrawals will not be permitted till the account matures.