Savers hunting for competitive returns are keeping a close eye on the best fixed-rate deals as interest rates begin to edge down across the market.
Even small changes can matter when locking money away for a year or more.
Union Bank of India UK is offering one of the strongest one-year fixed savings deals on the market.
The account has been given an “excellent” rating by Moneyfactscompare, which said the deal continues to stand out against similar fixed-rate savings products.
Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Union Bank of India (UK) Ltd has reduced the rate on its One Year Fixed Rate Deposit.
“The account now pays 4.33 per cent; however, it maintains its market-leading position when compared to its peers.”
Savers who open the account will receive their interest at the end of the fixed one-year term, when the deposit matures.
Those wishing to open the One Year Fixed Rate Deposit must provide a minimum of £1,000, with the account accepting savings up to £1million.
Provider offers ‘market-leading’ 4.33 per cent interest rate on ‘excellent’ account
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As is typical with fixed-term products, customers cannot make withdrawals or add further funds during the 12-month period.
Ms Eastell noted that savers “must be comfortable with their investments” when considering such accounts, which suit those able to set aside money without needing access to it.
Based on the current 4.33 per cent rate, a £1,000 deposit would generate £43 in interest over the year, bringing the total to £1,043.
Savers putting away £10,000 would see their balance grow to £10,433 after 12 months.
A £1,000 deposit would generate £43 in interest over the year,
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PAApplicants must be at least 18 years old and can open the account via post or in branch, though online applications are not available.
Deposits up to £85,000 benefit from Financial Services Compensation Scheme protection.
Unlike ISAs, the account does not offer tax-free status, meaning customers must account for any tax liability on interest exceeding their Personal Savings Allowance threshold.
The bank sends notification two weeks prior to the account reaching maturity.
Existing Fixed Rate Deposit holders who choose to reinvest into another fixed-term product at maturity receive a 0.10 per cent loyalty bonus.
For those seeking alternatives, Chetwood Bank provides a competitive option with its One Year Fixed Rate Savings account paying 4.26 per cent AER.
This product requires the same £1,000 minimum deposit, with interest similarly paid at maturity and no withdrawals permitted during the term.
OakNorth Bank matches this 4.26 per cent AER with its One Year Fixed Rate Saver, though it stands out by accepting deposits from as little as £1. The OakNorth account permits savings of up to £500,000, with interest paid upon maturity and withdrawals restricted until the term concludes.
Both alternatives sit 0.07 percentage points below Union Bank of India UK’s offering.