State Bank of India tops the savings tables
State Bank of India's Hi Return Fixed Deposit Five-Year Bond tops the table for long-term fixed-rate savings accounts, paying an impressive 4.5%.
The account has a minimum investment of £1,000 and can be operated in branch or by post only.
In order to open the account you must have a State Bank of India savings or current account.
It's a great rate but you can only open it if you are certain you won't need your cash because in order to earn 4.5% you cannot withdraw any of your cash for five years.
The next best rate on the market is 4.25%, which is offered by Clydesdale Bank, but you'll need to deposit £2,000 to get that.
Anyone looking to squirrel away a smaller amount will have to go with BM Savings that is paying 4.2% on its five-year fixed-rate bond.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.