One specialist financial services group has recently moved to the top of the two-year fixed rate bond tables with a new 3.75 per cent interest rate offering.
Close Brothers now holds the best two year fix on the market. Previous title-holder Kent Reliance was edged out by a mere 0.05 per cent. Other market leaders such as the Post Office and Leeds and Cheshire building societies have offered 3.65 per cent and 3.6 per cent respectively.
The new two-year fix offering comes as High Street giants such as Santander and Lloyds TSB race to increase their savings account market share. The personal and business bank account providers are keen to do so before the Monetary Policy Committee of the BoE increases the current 0.5 per cent base rate.
The minimum deposit on the Premium Gold fixed rate bond from Close Brothers is £10,000. Basic rate taxpayers will net 3 per cent from the two-year fix, while those paying the higher rate will see a return of 2.25 per cent.
Additionally, Close Brothers has a license from the Financial Services Compensation Scheme, providing savers with up to £85,000 in cover in the unfortunate but unlikely occurrence of a bank failure. One of the few merchant banks remaining in the UK that have avoided being acquired by High Street banks such as RBS and Lloyds, Close Brothers can trace its origins to over 130 years ago.
The firm has since expanded since its founding in 1878, to provide savings bonds and also investment banking services to its clients.
Industry experts have advised savers to act fast as the new best buy two-year fix will only be available for a limited time from Close Brothers.