Bank launches new savings account with 'excellent' 4.42% interest rate

Secure Trust Bank has earned an “excellent” rating after launching a new fixed savings account paying 4.42% interest.

The interest rate is fixed for three years and nearly tops the table in its sector. Fixed-rate accounts enable savers to lock their money away for a set period at a fixed interest rate. They’re best for those who can afford to leave their money untouched for a specific term, as withdrawals are typically not allowed. Commenting on Secure Trust Bank’s new deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Secure Trust Bank has launched a new range of fixed rate bonds, including a Three Year Fixed Rate Bond.”

Savers can launch the account with a minimum deposit of £1,000, and interest is paid annually.

Ms Eastell continued: “Paying 4.42% AER yearly, savers with at least £1,000 to deposit may find this an attractive option if they are looking to receive a guaranteed return over the next three years.”

She said further additions are permitted through a nominated account for 30 days, which “adds to its appeal.” However, as is typical of fixed accounts, savers will not be allowed to access their pots early.

Ms Eastell added: “Overall, the deal earns an Excellent Moneyfacts product rating.”

Birmingham Bank places just above Secure Trust Bank with an Annual Equivalent Rate (AER) of 4.43% on its three-year fix. People can launch the account with a minimum deposit of £5,000, and up to £500,000 can be saved overall.

Interest is paid on the anniversary of opening, and withdrawals are not allowed until the term matures.

GB Bank is also offering a competitive deal in the three-year fixed rate sector with an AER of 4.4%. People can launch the account with a minimum deposit of £1,000, and up to £100,000 can be put away overall. Interest is also paid on the anniversary of opening, and withdrawals are not permitted.

For savers with smaller sums to invest, JN Bank places just behind with its three-year fix offering an AER of 4.39%. You can launch the account with £100, and up to £500,000 can be saved overall. Interest is paid on the anniversary of opening, and withdrawals are also not allowed until the term ends.