Close Brothers launches market-leading 4.25% two-year bond
Interest rates in the savings market have received another boost with the launch of a market-leading two-year bond from Close Brothers Savings.
It's new Premium Gold account pays 4.25% on balances between £10,000 and £10 million. It's a high minimum balance but for anyone with a reasonable amount of savings it's a good rate – 0.25% above the next best two-year bonds from Clydesdale Bank and Yorkshire Bank.
The account pays the highest rate of interest seen on a two-year fixed rate savings bond for 20 months.
Following the launch of a number of market-leading accounts last week it seems the savings market is definitely hotting up, as the smaller banks try to lure in savers whose current fixed-term deals are maturing.
Close Brothers Savings is a relatively unknown bank, but it has existed since 1878. It usually specalises in loans, trade securities and investment management solutions but in recent years it has been steadily attracting individual savers with its impressive interest rates.
The bank is a member of the Financial Services Compensation Scheme (FSCS) so savings balances up to £85,000 (or £170,000 in a joint account) will be protected and returned to you in the unlikely event of the bank going bust.
The Financial Services Compensation Scheme is the compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading, the FSCS may be able to pay compensation to its customers. Limits apply to how much compensation the FSCS is able to pay, and those limits vary between different types of financial products. However, to qualify for compensation, the firm you were dealing with must be authorised by the Financial Services Authority (FSA).