Savers looking for a new fixed rate bond this month may be in luck thanks to one personal and business bank account provider’s launch of a new one-year fix with a 3.6 per cent interest rate.
Kent Reliance Building Society has nabbed the top spot in the one-year best buy tables with their new offering, eclipsing several of its competitors. Derbyshire, Dunfermline, and Cheshire building societies all announced new one-year fixes recently at just 3.55 per cent interest.
Banks and business societies are keen to lure in savers this October, as around 535,000 fixes are maturing over the next few weeks. However, the best-buy tables have been more or less stagnant up until recently, with financial services providers voicing complaints that rate increases would be too costly for them to implement.
The new 3.6 one-year fix from Kent Reliance, available to savers for as little as a £1,000 minimum deposit, bucks that trend. Savers also have the option of receiving monthly interest, provided they are prepared to accept a slightly reduced interest rate of 3.54 per cent.
Savers of any age can take out the new savings bond, and it is available either in branch, through the post, or via the Internet. However, once the bond is opened, savers are not permitted to make any additional deposits for the rest of the term.
Savers are permitted to make withdrawals from the account, though doing so will forfeit any accrued interest for 180 days. If a withdrawal is made before 180 days have elapsed, the fee is subtracted from the initial capital of the bond.