Home
How is interest calculated?
Interest is paid at a rate of 4.25% gross AER per year.
The interest rate is fixed for two years.
Is interest accumulated to my savings?
No, interest is automatically paid to an account you have nominated on the first anniversary of the start date of the account and again at maturity.
How long do I have to tie my savings up for?
Two years.
Can I get access to my savings?
No withdrawals can be made from the account during the two years; likewise no additional deposits can be made once the account has been opened.
How do I manage my account?
Application forms can be downloaded online by clicking here. Close Brothers Savings will accept one single payment only, which can be made by cheque or electronic transfer.
Questions regarding the account should be directed to Close Brothers Savings on 020 7392 1772 or by visiting www.closesavings.co.uk
How much can I save?
The minimum which can be saved is £10,000, the maximum is £10,000,000.
How is the interest taxed?
Interest will be paid less the deduction of basic rate tax.
Higher rate tax payers will have further tax to pay, non tax payers can complete the relevant R85 form to request interest is paid without the deduction of tax.
What are the advantages of this account?
- The Close Brothers Savings Premium Gold Account is currently the most competitive two year fixed rate bond available
- The minimum deposit of £10,000 is relatively low
- Close Brothers Savings are members of the UK Financial Services Compensation Scheme
What are the disadvantages?
- Whilst the interest rate is certainly competitive because it is paid away each year to a nominated account you do not benefit from compound interest
The Investment Sense Verdict
A thumbs up from Investment Sense.
The rate is attractive with the account sitting at the top of our best buy savings accounts tables for two year fixed rate bonds, you are only tying your money up for two years and the minimum investment of £10,000 is relatively low.
Indeed the rate is so competitive it is unlikely that this account will remain available for long, people considering opening it should think about acting fast.
Whilst it would be nice if there was an option to have interest added to the original capital and therefore benefit from compound interest, the 4.25% gross AER still makes the account attractive, and who knows, by the time your first interest payment is made in about a year’s time, interest rates may have risen.
Should you wish to discuss this account, or other options for your savings speak to one of our team of advisers today. They can be contacted on 0115 933 8433, 0845 078 7774 or by sending an email to info@investmentsense.co.uk.
You can also search for the best savings interest rates by using our best buy tables.
