As interest rates continue to grow throughout 2023, NS&I has announced a new market leading one-year fixed-rate savings account, offering 6.2%.
The new record rate comes with a 100% Treasury guarantee, meaning should the market depreciate in value, savers will still be able to benefit from the table topping deal.
The minimum amount savers can deposit is £500, while the maximum is £1m.
Lucinda O’Brien, expert at money.co.uk savings accounts, said: “The new NS&I savings account makes an attractive option for savers looking to open a fixed-rate account. The deal is a new market leader, and the benefits of a one-year fixed rate means users will be protected against any fluctuation in interest rates.
“However, once you deposit your money into a fixed-rate savings account, you won’t be able to withdraw until the 12 months is up, at which time you’ll have the option to remove your money or save it further.
“This means that a fixed-rate bond is not always the best option available for savers. Earlier this month, Santander increased the interest rate on its linked instant access savings account to 7%.
“This could work well for those who need to dip in and out of their savings, as withdrawals are unlimited once opened – but remember, you’ll need to open a Santander Edge current account to access it.
“Savers may also consider a notice savings account, which allows access to your savings as long as you give prior notice before withdrawal. Currently, Oxbury offers a 90-day notice savings account, which has a 5.45% variable rate.
“Whatever your financial position, it’s important savers take into account which savings deal works best for them personally.”
For more information and guidance on saving, including the best savings rates available today, visit: https://www.money.co.uk/savings-accounts
