Raisin UK, a UK savings marketplace that connects savers with a range of banks offering deposit-protected savings accounts with competitive interest rates, has launched a new two-year savings account. It has partnered with Gatehouse Bank to offer a two year Fixed Term Deposit account which is offering a market leading rate.
Britons wanting to get the best interest rates on their savings might be interested in this new savings account giving 3.10 percent interest.
This will be most beneficial for people who are able to lock their money away for two years without having to make any withdrawals.
The estimated balance at the end of the term based on a £1,000 deposit is £1,062.96.
The minimum amount people can deposit is £1000, and the maximum amount they can deposit is £85,000.
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This is a Two Year Fixed Term Woodland Saver account which is operated under Shariah principles.
This means that interest cannot be earned, however they generate profit instead.
After two years people can choose to reinvest or withdraw their funds on maturity.
If the bank do not receive maturity instructions by the maturity date, they will transfer one’s money into an Easy Access account.
Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said: “This week Gatehouse Bank has made rate increases across its Raisin UK – Fixed Term Deposits.
“One of the accounts to experience a noteworthy rise of 0.45 percent is the two Year Fixed Term Deposit, which now pays a market-leading return of 3.10 percent when compared to other similar bonds currently on the market.
“As is often the case with fixed accounts, investors need to be comfortable with their initial deposit and the duration of the fixed term, as neither early access nor further additions are permitted, but savers happy to secure their funds away could be tempted by the return alone.
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One year fixed term accounts won’t be the best option for everyone as some people will need an easy access account to withdraw money when they need it.
Profit is calculated daily and paid annually back to someone’s Raisin UK account.
To open this fixed term savings account, Britons must apply online through Raisin.
Savings accounts at Raisin are only available through their online application process.
To be eligible to apply, people must:
- Be a UK resident who is aged 18 or over
- Hold a UK bank or building society account from which you will fund your application
- Have a valid mobile phone number and email address
- Have a UK National Insurance Number
Britons can manage their savings account through Raisin by logging into their Raisin UK Account.