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'Top savings account!' Savings provider offers 4.32% interest on savings of £250,000

Daily Express logo Daily Express 28/09/2022 Jackie Annett
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Savers looking for a good return on their savings might be interested to learn that Hampshire Trust Bank's Two Year Fixed account offers an attractive savings rate of 4.32 percent. It's been named a "top pick" by the team at Money Saving Expert who claim it's one of the best interest rates available in more than a decade.

While savings rates are slowly rising, the value of cash is diminishing due to soaring inflation and the increasing cost of living.

Experts say there has never been a more important time to make sure people are getting the most out of their savings.

For people who can afford to lock their money away for two years, Hampshire Trust Bank's Two Year Fixed account could be an option.

To open an account, customers only need £1 and they can invest as much as £250,000.

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Woman looking at savings app on phone alongside another putting coins into a jar © Getty Woman looking at savings app on phone alongside another putting coins into a jar

On the Hampshire Trust Bank website it says: "Our FSCS protected fixed rate personal savings accounts are perfect for the savvy saver who wants to know exactly how much money they'll earn over a specific period of time, receiving interest annually."

Meanwhile, Investec increased the rate on its fixed-term account this week but people will need to have at least £5,000 to save with them.

It increased the interest rate on its Fixed Rate Saver from 3.30 to 3.90 percent, following the Bank of England base rate rise last week from 1.75 to 2.25 percent.

NS&I (National Savings & Investments) also said it is increasing its prize fund rate from 1.40 percent to 2.20 percent.

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This decision will add £76million to the prize fund for October and will see the number of £5,000, £10,000, £25,000, £50,000 and £100,000 prizes almost double.

Meanwhile, savers are being encouraged to switch if they are getting less than three percent interest.

Derek Sprawling, savings director at Paragon Bank said: "it is not unknown to see two-year fixed savings account that may only offer around 1.60 percent AER from high street providers.

"These rates are though in marked contrast to challengers, which can often provide a far greater return for savers - with two-year fixed rates on savings of over three percent AER available today."

READ MORE: Savings provider increases interest rate to 3.9 percent

Value of cash falling chart © Express Value of cash falling chart

He continued: "While it takes time to find the right products to fit an individual's circumstances, the benefits of doing so are apparent - and when savers need to be making their money work to help pay for the essentials in the years ahead, and not just life's little extras, I urge everyone in a position to do so."

There are other options for savers who don't wish to lock their money away but prefer a regular account instead.

NatWest is offering its savers an interest rate of five percent on its Digital Regular Saver account plus £175 to switch.

However, some experts think savers may get a much better return on their savings by holding off for a bit.

The plunging pound is good news for savers as they could soon benefit from even higher interest rates on their savings.

While today's best buy savings accounts pay just over four percent, that could soon double as the Bank of England hikes interest rates again.

Myron Jobson, senior personal finance analyst at Interactive Investor said: "Rising prices could still erode the purchasing power of cash savings over time.

"This makes it vital savers pick the most competitive account."

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