Savings provider boosts interest on account to ‘excellent’ 4.62%

SmartSave has increased the interest on its three-year fixed account to 4.62%, earning an “excellent” Moneyfacts rating.

The account is aimed at savers with larger sums to invest, as it requires a minimum deposit of £10,000 to open.

However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £1,451.02 over three years.

Fixed-rate accounts add more certainty to saving, enabling savers to lock their money away for a set period at a fixed . They’re best for those who can afford to leave their money untouched for a specific term, as withdrawals are not typically allowed.

Caitlyn Eastell, a spokesperson at , said: “SmartSave has increased selected rates across its range of Fixed Savers, including its three-year option.

“The account now pays 4.62%, which sees it improve its position in the top tables, and pays a leading rate for those able to invest a minimum of £10,000.”

As with many fixed bonds, savers cannot withdraw their cash before the term is completed.

However, Ms Eastell noted they may be “glad to see” that further additions can be made 14 days after the account opening.

She added: “Overall, the account receives an Excellent Moneyfacts product rating.”

Up to £85,000 can be invested overall, and interest is paid on maturity.

While SmartSave is offering an appealing deal, one account has skipped just ahead to top the table this week. Birmingham Bank is offering an Annual Equivalent Rate (AER) of 4.63% on a minimum deposit of £5,000.

Up to £250,000 can be invested and interest is paid on the anniversary of opening. Withdrawals are not permitted until the account matures.

For savers with smaller sums to invest, Hodge Bank is offering an AER of 4.61% on a minimum deposit of £1,000.

Up to £1million can be invested overall, and interest is paid on the anniversary. Withdrawals are not permitted unto the account matures.