Saga has increased the tiered rates paid on its three-year fixed rate deal, enabling it to establish itself in the Moneyfacts charts.
3 Year Fixed Rate Savings now pays 2.15% yearly on balances from £1 up to £9,999 and 2.50% on balances of £10,000 or more (2.13% to 2.47% monthly), earning it a place among the top 10 accounts of its sector.
This account can be opened online and by phone with a minimum investment of just £1. It must then managed by post. This deal is for those aged 50 and over only.
Once the account is open, no further additions are permitted. However, it is possible to access funds prior to maturity, although this will result in an interest penalty of up to 270 days' interest depending on the length of the remaining term (90 days' interest for less than one year remaining, 180 days' interest for up to two years and 270 days' interest for up to three years).
Mature savers looking for a competitive fixed rate deal are likely to be intrigued by this latest rate increase, especially if they have a larger sum to invest. Adding to its appeal is the option of earning monthly interest, which will attract those who wish to secure a regular income, and the possibility of early access, albeit with a potentially hefty interest penalty.
Moneyfacts rating: Excellent
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