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What rate of interest do I get?
The 18 month account pays an annual interest rate of 4% gross AER and the three year account pays 5% gross AER per annum.
Is interest accumulated to my savings?
No, interest is paid annually to an account nominated by you.
How long do I have to tie my savings up for?
The accounts have fixed terms of 18 months and three years respectively.
Can I get access to my savings?
You cannot get access to your savings during the term.
How do I open and manage my account?
The account is a limited offer, which could be withdrawn at anytime.
To open an account an application form needs to be completed, which can be by clicking here.
Further Terms & Conditionsa are also available here.
How much can I save?
The minimum amount you can save is £10,000; the maximum is £10 million per account.
Close Savings will only accept one single payment using one method per account.
How is the interest taxed?
Non taxpayers can apply to have the interest paid without the deduction of tax. Interest for tax payers is taxed in the normal way.
What are the advantages of this account?
- The interest rate, even allowing for the fact it is not compounded (due to the annual payment of interest to a separate account) is excellent and much better than alternative three year fixed rate accounts
- Non taxpayers can apply to have the interest paid without the deduction of tax
What are the disadvantages?
- Interest is not compounded as it is paid away annually to a separate account, however the rate is still highly attractive
- The account cannot be opened as a Cash ISA
- The account is a limited offer and could be withdrawn at any time
- You cannot get access to your savings during the term
The Investment Sense Verdict
At the time of writing both accounts offer market leading rates, the three year account for example is nearly 1% per annum better than its nearest rival.
Whilst it would have been nice to have interest compounded over the term, this is a small niggle, with such an eye catching rate. It is also a shame that the account is not available as a Cash ISA.
Of course you need to be prepared to tie up your savings for either 18 months or three years; however if you can do that you will be rewarded by an excellent rate of interest.
Should you wish to discuss this account 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.
