GB Bank has increased rates on its range of fixed bonds, with its 5 Year Fixed Rate Bond now paying 5.03% AER and earning an "excellent" product rating from Moneyfactscompare.co.uk. The website's "Pick of the Week" highlights the latest products or rate changes to hit the market.
Product details for GB Bank's 5 Year Fixed Rate Bond
The account, available online, pays 5.03% gross / 5.03% AER on anniversary and also offers a monthly interest option of 4.92% gross / 5.03% AER. The minimum opening amount is £1,000, with a maximum investment of £100,000. Access is not permitted, and further additions are allowed for 21 days from account opening.
Personal Finance Analyst Caitlyn Eastell of Moneyfactscompare.co.uk said savers "can earn 5.03% starting from £1,000, the account takes the market-leading position when compared against its peers and offers the highest returns in the fixed bond market, which is positive news for those looking to secure guaranteed returns over the next five years".
She noted that "earlier access is not permitted, so savers must be comfortable locking away their cash for the full term". However, "adding to its appeal, further additions can be made for 21 days from account opening and savers can choose between receiving their interest monthly or on its anniversary". She added: "On assessment, this account earns an Excellent Moneyfacts product rating."
AlRayan Bank's Cash ISA also highlighted
Moneyfactscompare.co.uk also highlighted AlRayan Bank's Meteor Savings – 1 Year Fixed Rate Cash ISA, which has increased its rate to a "market leading" 4.75% (including a 0.15% Meteor Boost). Deposits start from £1,000, but further additions are not permitted.
Ms Eastell said the account is "best suited to savers looking to maximise their tax-free returns and those looking for certainty by guaranteeing their rate for the next year". Though early access is permitted, she noted "the expected profit rate will drop dramatically to just 0.05% for 90 days or the number of days the account has been opened, depending on whichever is lower, so access should be carefully considered".
"Before the account matures it's important savers give instructions on where their cash should go, otherwise it will be paid into the default linked or nominated account," she added. AlRayan's savings products comply with Sharia principles, meaning returns are based on profit sharing rather than interest.
Key details for the AlRayan Bank ISA include a rate of 4.75% gross / 4.75% AER payable on maturity, a one-year term, a maximum investment of £1 million, and online account management via the Meteor Savings platform. Transfers in are permitted from Cash and Stocks and Shares ISAs, while transfers out are allowed on closure only, subject to the same reduction in expected profit rate. The minimum applicant age is 18.
