Savings account: Bank offers market-leading rate of 3.20% on account | Personal Finance | Finance
Union Bank of India (UK) has launched this deal as part of their GBP Fixed Rate Deposit savings products. The one-year fixed rate is paying customers 3.20 percent.
This provider is safeguarded under the UK’s deposit guarantee scheme.
This means deposits will be protected up to £85,000 per person, or up to £170,000 for joint accounts, by the Financial Services Compensation Scheme.
The minimum deposit required is £1,000. To access the 3.20 percent, Britons will not be able to withdraw the cash until the fixed rate term comes to an end.
Interest is calculated on closing balances at the end of each day and paid annually.
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For every £1,000 deposited for one year, at 3.20 percent gross, the interest earned would mean the total reaches £1032.00.
To open an account, Britons need to visit a branch or submit the application form by post. More information can be found on the Union Bank of India UK’s website.
Inflation has risen to 9.4 percent as the costs of goods and energy continue to soar.
To tackle the rapid rise, the Bank of England has increased the base rate to encourage people to save.
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Union Bank of India UK also offer these fixed deals:
- One year 3.20 percent Gross
- 1.5 years 3.25 percent Gross
- Two years 3.30 percent Gross
- Three years 3.30 percent Gross
- Four years 3.35 percent Gross
- Five years 3.40 percent Gross.
Once any account has been opened, the rate will remain static for the fixed term.
The base interest rate rise has meant increases to various savings accounts, but some offer better rates than others.
HSBC explained: “With a fixed rate savings account, you lock away your savings for a set amount of time at a set interest rate.
“It’s also known as a fixed-term bond.
“You may be able to choose how long your savings are locked away for, or it may be an amount of time set by the bank.”
Other leading rates on the market are offered by Oaknorth Bank and QIB UK – both of which are offering 2.85 percent.
Union Bank is also paying 3.30 percent on both its two-year deal and three year deal – both of which are market leading.
Charter Savings Bank Fixed Rate Bond is also one of the best on the market as their one year fixed rate savings account is 2.83 percent.
Alternatively Kent Reliance One Year Fixed Rate Bond – Issue 100 is paying 2.79 percent AER, with interest paid on maturity.
