Finding a savings account paying more than inflation these days can be like looking for a needle in a haystack, but longer-term fixed products offer some solace.
Last month saw Leeds Building Society launch two new five- year fixed-rate Isas – both of which shot straight to the top of the best buy tables.
The No Access Isa pays 3% fixed until 31 October 2018 and can be opened with a minimum of £1, with interest paid on 31 October each year. However, this Isa does not allow withdrawals without loss of interest.
The building society's other five-year product - the Fixed Access Isa - pays 2.75% and allows withdrawals of up to 25% of the original amount invested without penalty.
Savingschampion.co.uk director Susan Hannums says this is a positive move from Leeds BS, with both Isas head and shoulders above the rest of the market. "The five-year No Access Isa is one of only three Isas that beat inflation, following the launch of another five-year fixed-rate Isa, also paying 3%, from Skipton Building Society."
Hannums says the Leeds Isa that allows penalty-free withdrawals is unusual because many rival accounts charge a hefty penalty for doing so. "It's good to give people different options and it will suit some people's circumstances more than others.You would have to compromise on the rate, although 2.75% is still fairly competitive for a five-year fixed-rate Isa."
Find the best Cash ISA or savings Account for you
The Skipton Five-year Fixed Rate Cash Isa, also paying 3%, is fixed to 12 October 2018 and requires a minimum opening balance of £500.
Leeds BS has launched a Five-year Fixed-Rate Bond paying 3%, which can be opened with a minimum investment of £100, and does not allow withdrawals until the day after maturity.