Yahoo Finance New four-year savings bond pays 2.06pc
Charter Savings Bank, which was established only two years ago, has launched a market-leading four-year savings bond and increased several other rates.
The bank now tops the best-buy tables for terms of one, two, three and four years.
The four-year bond pays 2.06pc; the other rates are shown in the table below. Over five years, where Charter pays 2.16pc, the top rate of 2.3pc comes from Milestone Savings, a Sharia’a compliant bank that pays an "expected profit rate" rather than interest. These rates are not guaranteed.
Charter Savings Bank fixed savings rates
The minimum deposit required for the Charter bonds is £1,000, and access is online only. No access is possible during the fixed term and the interest can be paid either annually or monthly.
Interest earned on fixed-rate bonds is covered by the personal savings allowance, which provides a basic-rate taxpayer with £1,000 of tax-free savings income, and £500 for higher rate taxpayer.
Deposits with Charter Savings Bank are protected by the Financial Services Compensation Scheme, which covers £85,000 per person, per provider.
Average savings rates have been creeping up, but it is only at the top of the table where significant movement is taking place, and rates are still lower than a year ago.
