Savings Watch: ICICI Bank UK's HiSave fixed-rate account

ICICI Bank UK's HiSave three-year fixed-rate account is paying 2.55% AER, currently the best rate on the market for three-year fixes. The account can be opened with a minimum of £1,000, with the interest paid monthly or annually. This is a no-access account, so you will be unable to make withdrawals or additional deposits.

For the over-50s, Saga's three-year fixed-rate savings account also offers 2.55% AER, and you can make withdrawals. But despite being able to open the postal-only account with just £1, the 2.55% rate applies only to those with savings of more than £50,000. On balances of between £1 and £9,999.99, savers will get 2.25% AER; balances of £10,000 to £24,999.99 offers 2.35% AER; and on balances of £25,000 to £49,999.99, savers will receive 2.45%.

But if you make withdrawals with the Saga account, you'll be hit with a charge subject to how long you have before the account matures - one year or less to go, and you'll pay the equivalent of 90 days' gross interest; two years left and you'll pay 180 days' gross interest.

There are two-year accounts which beat both these rates, such as FirstSave's two-year loyalty bond Issue M yearly interest, which pays 2.6% AER.

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