Bank offers market-leading 6.15% interest rate on fixed savings account

With savings products growing increasingly competitive month on month, Tandem Bank is now offering one of the top rates of interest with its 18-month fixed-term savings account.

Launching in 2014 as one of the UK’s original digital challenger banks, Tandem Bank offers a number of products from mortgages and home loans to motor finance and savings accounts.

Savers have the choice of instant access or fixed rate savers, each boasting competitive interest rates compared to the broader savings market.

Now offering a market-leading Annual Equivalent Rate (AER) of 6.15 percent, people investing in Tandem Bank’s 18-Month Fixed Rate Saver can open an account with just £1.

Fixed savings accounts enable people to lock in an interest rate at the start of the term without having to worry about it being changed, adding another layer of certainty to saving as rates fluctuate.

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Interest is calculated daily and is paid to the person’s linked UK current account at maturity. The account can be launched via the Tandem app by UK residents aged 18 or over, and up to £2.5million can be invested overall.

Aligning with the terms of typical fixed rate accounts, withdrawals are not permitted until maturity unless during cases of financial hardship, which will be assessed on a case-by-case basis.

But while Tandem Bank may be offering the top rate for 18-month fixed-term savers, the competition isn’t too far behind. OakNorth Bank’s Fixed Term Savings Account offers an AER of 6.05 percent.

The account requires a minimum deposit of £1 and interest is calculated daily and applied at maturity. Up to £500,000 can be invested overall and withdrawals are not permitted unless in cases of hardship at the bank’s discretion.

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Ford Money is also offering an AER of 6.05 percent on its Fixed Saver 18 Month, and savers need a slightly higher deposit of £500 to open it.

Interest is calculated daily and can be paid monthly or annually, linked to the date the first deposit is received. Savers must be aged 16 or over and the account can only be launched online.

Up to £2million can be invested overall and savers are not allowed to withdraw any funds throughout the term.

New research by Shawbrook found that nearly half of savers in Britain (46 percent) are leaving their savings in low-interest current accounts and are risking throwing “hundreds” away.

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Despite the opportunity to capitalise on current rates, only one in three savers (35 percent) surveyed plan to switch savings accounts in the next six to 12 months, with a mere 13 percent considering it a top priority.

Adam Thrower, head of savings at Shawbrook said: “Astonishingly, 42 percent of savers are earning less than 2.5 percent on their current savings, and it is vital they act quickly to secure better rates for maximum returns.

“Failing to do so means people are squandering their hard-earned money. Explore your options and if you can move your money there are extremely competitive rates available at the moment. For example, by switching to a leading one-year fixed-rate account, those currently earning a meagre 2.5 percent could double their returns.”

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