HBL UK has increased the interest rate on its one-year fixed-term savings account to five percent, receiving an “excellent” rating from Moneyfactscompare.
Savers must make a minimum deposit of £1,000 to open the account. Interest is paid on maturity.
Fixed-term savings accounts are becoming increasingly popular when interest rates fluctuate, as these investments allow savers to secure the interest offered at the time the account is opened.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, HBL Bank UK has increased the interest rate on its one-year deposits with Raisin UK, now at five percent.
“Compared to other one-year fixed deposits, the account occupies a competitive position.
“Savers must have a minimum investment of £1,000. However, it is wise to note that early access and further deposits are not permitted, so investors must ensure they are happy with their initial deposit.
“Overall, this offer receives the product rating “Excellent” from Moneyfacts.
Up to £85,000 can be invested in the account and savers must be at least 18 years old. HBL Bank, formerly Habib Bank Limited, was founded in the UK in 1961.
While HBL UK may offer a cheaper interest rate, it is not currently the top-ranked one-year fixed-rate savings account provider.
With an annual interest rate of 5.25 percent, United Bank of India tops the list for one-year fixed interest rates.
Savers must make a minimum deposit of £5,000 to open the account. Interest is paid on maturity. Up to £340,000 can be invested. Withdrawals are only possible after the term has expired.
The one-year fixed-term deposit from Mizrahi Tefahot Bank Ltd. offered through Raisin UK comes in just behind with an effective annual interest rate of 5.16 percent.
A minimum deposit of £1,000 is required to open the account. Interest is paid on maturity. Up to £85,000 can be invested in total. Access is only permitted once the account matures.
Ms Eastell said: “It’s crucial that savers keep an eye on the changing market and make the switch to ensure they don’t get ripped off, particularly as we’ve seen some of the top interest rates drop below five per cent. It wouldn’t be too surprising to see more providers adjust their rates in response.
“Since the last inflation announcement, fixed interest rates have been further reduced, so it might be wise for savers to consider locking in a rate while the majority continue to pay competitive returns.”
