Savers are being given the chance to see their money grow each year with the State Bank of India's 5Year Step Up Fixed Deposit account.
The product requires a minimum investment of £1K and pays 3.25% yearly (3.203% monthly) in the first year, 4.00% (3.9289%) in the second year, 4.50% (4.41%) in the third year, 5.00% (4.889%) in the fourth year and 5.75% (5.604%) to maturity.
Earlier access is allowed on closure only on the anniversary date from the second anniversary, and savers must hold or open a State bank of India savings or current account, although there is no requirement to fund them.
While the headline rate of 5.75% is impressive, clients should consider that the overall rate is 4.50%, the same as can be gained from a straight forward long term bond.
This product is not included in the Moneyfacts Best Buy charts as escalator bonds are not eligible.
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