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The best fixed term savings accounts

Fixed term savings accounts allow bank customers to receive a guaranteed rate for a specific period of time. They are a good choice for people who wish to earn more interest from their savings. This article will look at some of the best fixed rate savings accounts in the UK, comparing different rates, terms and conditions.

Best fixed rate offers on the market

Customers can earn better rates with fixed term savings accounts when interest rates remain low. In the last few years, with record base rates set by the Bank of England, fixed rate savings accounts have become an increasingly viable option for bank customers.

One of the best offers include a two year fixed rate bond with BM Savings, which offers annual interest of 3.65 percent before for minimum deposits of £1, while the United Bank UK fixed deposit account pays in 3.5 percent annual interest for two years with a minimum deposit of £2,000.

Customers who would prefer to save their money for shorter terms can choose Cahoot, which offers a one year fixed rate account with an annual interest rate of 3.6 percent before tax. However, this account requires a minimum investment of £25,000, although this may be a tempting option for anyone saving up for a mortgage deposit.

Customers looking for longer fixed term savings accounts could consider a three year fixed rate bond with Saga, which pays annual interest of 3 percent before tax for minimum deposits of £1,BM although investors need to be at least 50 years old to be eligible. Vanquis Bank, meanwhile, offers a five-year plan, paying in 4.06 percent for minimum deposits of £1.000.

A prime time for fixed term savings accounts

With the UK economy continuing to remain relatively fragile, more pressure has been put on the Bank of England to cut interest rates even further. However, the good news is that people struggling to save with variable rate accounts can consider fixed term savings accounts to prevent their money from losing value.

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