Returns boosted on 120-day notice account and three-year fixed rate bond.
Secure Trust Bank has launched two new market-leading savings accounts.
Savers can now benefit from boosted returns on the 120 Day Notice Account (Issue 12), which pays 1.91% AER and the Three-Year Fixed Rate Bond (Series 10), which pays 2.51% AER.
Both of these accounts can be opened online with a minimum deposit of £1,000 and managed over the phone or by post.
The 120-day notice account is restricted to three capital withdrawals and four interest withdrawals a year, while the three-year bond does not allow access to deposited funds until 31st January 2018.
How they compare
The new products from Secure Trust Bank have shaken up the best buys.
Here's how they stack up against the competition
Best notice accounts
|
Account |
Notice |
Interest rate AER |
Minimum deposit |
|
Secure Trust Bank 120-Day Notice Account (Series 12) |
120 days |
1.91% |
£1,000 |
|
Shawbrook Bank 120 Day Notice Personal Savings Account (Issue 23) |
120 days |
1.85% |
£1,000 |
|
Islamic Bank of Britain 120-Day Notice Account |
120 days |
1.80% |
£250 |
As you can see Secure Trust Bank has moved ahead of Shawbrook Bank’s 1.85% 120-day notice account, offering 0.06% more.
However, it's worth bearing in mind that Secure Trust Bank restricts the number of withdrawals to three for capital and four for interest a year, while Shawbrook doesn’t.
For more of the best notice savings accounts check out The best notice savings accounts.
Best three-year fixed rate bonds
|
Account |
Term |
Interest rate AER |
Minimum deposit |
|
Secure Trust Bank Fixed Rate Bond Three-Year Term |
31st January 2018 |
2.51% |
£1,000 |
|
Bank of Baroda Fixed Deposit |
Three years |
2.50% |
£500 |
|
Shawbrook Bank Three-Year Fixed Rate (Issue 22) |
Three years |
2.50% |
£5,000 |
|
State Bank of India Fixed Deposit |
Three years |
2.50% |
£10,000 |
Secure Trust only modestly beats rival three-year fixed rate deals, offering just 0.01% more.
However, if you take out the Secure Trust product in December over the other top accounts the fixed rate will last a month longer.
[SPOTLIGHT]To see the top rates for one-, two-, four and five-year fixed rate bonds check out The best fixed rate savings accounts.
Giving up access to your cash
In general the longer you are willing to give up access to your cash the better the rate of return you will get.
However, with the Bank of England Base Rate (currently 0.5%) expected to creep up from next year, savings rates are likely to follow.
So locking into longer lasting deals of four, five or seven years now could be a bit of a gamble.
If you don’t want to take the risk shorter deals like notice accounts as well as one-, two- and three-year bonds could be more suitable.
Best off with a bank account!
That said, if you have a more modest savings balance then the best home for your money is actually a bank account.
Bizarre as it sounds there are a number of bank accounts now offering a far more enticing return on your cash than dedicated savings accounts. What's more, you have free access to your money so you don't have to worry about how much you can afford to lock away for months or years at a time.
For example, the Nationwide FlexDirect pays 5% on balances up to £2,500 for the first year, the TSB Classic Plus pays 5% on balances up to £2,000 (but with no time limit) and the Santander 123 current account pays 3% on balances between £3,000 and £20,000.
More on savings:
The best fixed rate savings accounts