Chetwood Bank has raised the interest rate on its 3 Year Fixed Rate Savings Account to 5.23%, earning an 'excellent' Moneyfactscompare rating. Savers depositing the minimum £1,000 could earn £165 after three years, while a £10,000 balance would yield £1,652 and a £30,000 balance could earn £4,957 over the account term.
Account details and requirements
There is no maximum investment amount, making the account potentially suitable for savers with large sums, though the minimum opening deposit is £1,000. Account holders must pay in all funds within 14 days of opening. After that, they will have no access to their money for three years, so Moneyfactscompare.co.uk recommends setting aside some cash in a day-to-day savings pot.
Caitlyn Eastell, Personal Finance Analyst at the comparison site, said: “The account now pays a market-leading 5.23% and may be an ideal option for savers willing to lock away their cash for the medium-term for the benefit of guaranteed returns.
Market comparison
“Savers will need to invest at least £1,000, but further additions can be made within 14 days of the account opening. Adding to its appeal, there is no maximum investment limit, making it an attractive option for savers with significant balances.
“However, as is the case with many fixed bonds, withdrawals are not permitted, so consumers should be comfortable with losing access for the full term, but it may be worthwhile having a separate flexible pot to cover emergency expenses. On assessment, this account receives an Excellent Moneyfacts product rating.”
Other 3-year fixed accounts
Chetwood Bank is currently offering the highest interest on 3-year fixed-term accounts, according to Moneyfactscompare data. The next highest offer comes from GB Bank, whose 3 Year Fixed Rate Bond pays 5.20% with a minimum opening sum of £1,000.
The Fixed Rate Saver at Investec Save pays 5.19%, but requires a minimum opening amount of £5,000. Customers who prefer a big-name brand may look at Tesco Bank, though its rates are lower, with its Fixed Rate Saver paying 4.85%.
