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Hodge Bank has increased the interest rate on its three-year fixed savings account to 5.39 percent, earning a Moneyfactscompare \u201cexcellent\u201d rating.<\/p>\n
With interest rates fluctuating, fixed savers can offer some certainty to saving as these accounts enable customers to lock in the rate at the time of opening.<\/p>\n
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: \u201cHodge Bank has increased the rate on its Three Year Fixed Rate Bond this week, improving its position in the market.<\/p>\n
\u201cNow paying 5.39 percent on investments of \u00a31,000, 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.\u201d<\/p>\n
Ms Eastell added: \u201cThere is also a monthly interest option which may entice those looking to supplement their income. Overall, the deal earns an Excellent Moneyfacts product rating.\u201d<\/p>\n<\/div>\n
The account can only be opened online by savers aged 18 or over, and up to \u00a31million can be invested overall.<\/p>\n
But while Hodge Bank may be offering a more \u201cappealing\u201d deal, it isn\u2019t currently the top rate on the market. Al Rayan Bank is offering a market-leading 5.6 percent Expected Profit Rate on its 36-month Fixed Term Deposit account.<\/p>\n
The account requires a minimum deposit of \u00a35,000 and profit is paid quarterly. Instead of paying interest to savers, Al Rayan Bank, as an Islamic bank, invests customers\u2019 deposits in ethical, Sharia-compliant activities to generate a profit.<\/p>\n
Profit rates are expected, however, the bank said it has always paid at least the profit rate it has quoted to its customers since it was founded in 2004.<\/p>\n<\/div>\n
Up to \u00a31million can be invested and withdrawals are not permitted until the term ends.<\/p>\n
Placing just behind is Zenith Bank\u2019s Three Year Fixed Term Deposit with an AER of 5.5 percent. The account can also be opened with a minimum deposit of \u00a31,000 and interest is paid on the anniversary.<\/p>\n
Early access is not permitted and savers must be aged 18 or over to launch an account.<\/p>\n
Commenting on the market, Rachel Springall, a finance expert at Moneyfacts, said: \u201cFixed bonds and ISA rates have fallen across the board, which will be disappointing news to savers.\u201d<\/p>\n
November has seen a \u201cclear downward trend\u201d in the fixed market as all average fixed rates fell for the first time since March 2021, Ms Springall said.<\/p>\n<\/div>\n
She noted: \u201cThere 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.\u201d<\/p>\n
However, she added: \u201cThere 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.<\/p>\n
\u201cDespite a slight dip in the choice of products, there are still many deals to choose from designed to suit different requirements.<\/p>\n
\u201cIt 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.\u201d<\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":"
[ad_1] Hodge Bank has increased the interest rate on its three-year fixed savings account to 5.39 percent, earning a Moneyfactscompare \u201cexcellent\u201d rating. With interest rates fluctuating, fixed savers can offer some certainty to saving as these accounts enable customers to lock in the rate at the time of opening. Commenting on the deal, Caitlyn Eastell, …<\/p>\n","protected":false},"author":1,"featured_media":12948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/12947"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=12947"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/12947\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/12948"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=12947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=12947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=12947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}