United Trust Bank has improved and extended its fixed deposit and cash ISA portfolio. Rates have been increased by up to 0.35% on existing products, while a new 18-month bond heads straight to the top of the Moneyfacts charts.
The UTB 1 Year Bond now pays 1.75% yearly, while the two-year version has a rate of 2.20% a year. The three-year bond now pays 2.50% annually and the five-year bond has a respectable rate of 2.95% per year.
The new 18-month bond (UTB 18 Month Bond) has been introduced with a highly competitive yearly rate of 2.15%.
As for the fixed ISA sector, the three-year version also felt the benefits of an increase, and now pays 2.50% yearly, while the five-year version has an annual rate of 2.95%.
The finer details…
The bonds can be opened by post or online, but can then only be managed by post. A minimum of just £500 is needed to open an account, but further additions and withdrawals are not permitted. Early access is also unavailable, so investors need to be comfortable with the amount invested and the term from the beginning.
The cash ISAs require an investment of at least £5,000 in the form of transfers in from cash or stocks & shares ISAs. Withdrawals and additions are not allowed, and transfers out will incur an interest penalty. The ISAs can be opened and managed in branch or by post.
Why we like them…
After receiving a welcome increase in rates, the one, two and three-year fixed accounts have made their mark on the Moneyfacts charts. The brand-new 18-month bond has also proven its leadership capabilities by topping the market for its term. Although these accounts offer little in the way of flexibility, the competitive rates and the need for only £500 of investment for the fixed bonds should appeal to investors.
Four Moneyfacts Stars have been awarded.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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