Ford Money has increased the interest rates of its One Year and Two Year Fixed Saver products to 5.3 percent. In addition, the Fixed Saver Three Year will be removed from sale.
The new rates, which came into effect on Tuesday, June 27, will apply to new and existing customers.
Ford Money commented: “We have taken this action as part of our routine practice of regularly reviewing our product portfolio and positioning within the wider savings market, as well as our current deposit-taking needs.
“All changes at Ford Money are made to ensure we’re offering customers the most appropriate and competitive accounts possible at any given time in the market.”
Fixed savings accounts enable people to lock in the interest rate offered at the time of opening, adding a layer of certainty – and they also typically provide some of the highest rates on the market.
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However, they do come with additional restrictions, such as stricter withdrawal rules, meaning people should be comfortable investing their money without touching it for a fixed term.
Ford Money’s Fixed Saver One Year, which saw an interest rate rise to 5.3 percent up from five percent, can be opened with a minimum deposit of £500.
Interest is calculated daily and can be paid monthly or annually, linked to the date the initial deposit is received.
Savers must be aged 16 or over and the account can be opened, accessed and managed online. Up to £2million can be invested overall and withdrawals are not permitted throughout the term.
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The same rules apply for Ford Money’s Fixed Saver Two Year, which saw an interest rate rise to 5.3 percent up from 5.15 percent.
But while Ford Money may be offering more competitive returns, it isn’t currently taking the top spot for fixed savers.
For both one and two year fixed savings accounts, Close Brothers Savings takes the lead with its One Year and Two Year Fixed Rate Bond, both offering an Annual Equivalent Rate (AER) of 5.85 percent.
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The accounts can be opened with a minimum deposit of £10,000 and interest is calculated daily and applied annually.
Savers must be aged 18 or over and this account is also there to be opened and managed online.
However, similar to Ford Money, withdrawals are not permitted so savers must be happy to leave their money in the account until the end of the term.
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