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Five minute finance: Savings and mortgages

Five minute finance: Savings and mortgages

Category: Savings

Updated: 27/09/2010
First Published: 27/09/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date. kicks off every week with a guide to some of the best financial products on the market.

Today, we put the spotlight on a long terms savings account, an ever popular ISA and a highly competitive mortgage.

Rothschild Reserve – 5 Year Fixed Rate Bank Deposit

After a six month absence, it is good to see Rothschild Reserve re-enter the fixed rate savings market. At 4.60%, the new bond pays the second highest rate on the market. Savers after a regular income can opt for interest to be paid monthly. Between £20,000 and £2 million can be invested into the bond, which is operated by post. Once opened, further additions and earlier access is not permitted.

The bond should prove popular with investors looking to secure a competitive rate, but with no access during the five year term, savers need to ensure they won't need access to their funds.

Yorkshire Building Society – Mortgage reductions

Yorkshire Building Society continues its competitive edge in the mortgage market by introducing a new market leading five year fixed rate mortgage. Borrowers with a 40% deposit are being offered a rate of 3.94% until 30th November 2015. The deal is subject to a £995 fee and offers an incentive of a flexible option.

For borrowers after a shorter commitment, YBS has also reduced the rate of its three year fixed rate to 3.89%, which is open to borrowers with a 25%. The deal also comes with an offset option, which allows borrowers to reduce the amount of interest applied to the mortgage account. A £495 product fee is also payable.

Clydesdale/Yorkshire Bank – Cash ISA – Fixed Rate Bond

Savers looking to commit funds for a year might be interested in the new one year fixed Cash ISA from Clydesdale and Yorkshire Bank. Savers are being offered a rate of 2.75%, which is one of the most competitive rates from a high street provider. The ISA accepts transfers in from other providers and savers can invest upwards of £2,000.

Access is available during the term, but will be subject to a loss of 180 days' interest. The bond is available via branch until 29th October 2010, so savers need to act fast if they want to take advantage of this competitive deal.

Find the best savings rates for you - Compare savings accounts

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.