Close Brothers launch 2-year fixed rate savings bond paying 3.75%

Close Brothers has launched a new two-year fixed rate savings account this week that pays 3.75 per cent and moves straight to the top of the fixed rate savings bonds best-buy tables.

It moves ahead of similar products on offer from the Post Office and Kent Reliance Building Society by 0.24 per cent.

But, if you want to take advantage of the deal, it is likely you need to move quickly as the product is expected to reach its funding and subscription limit very quickly.

The account pays interest annually and the minimum investment required £10,000.

The release comes as the two previous best deals have both been pulled. The Islamic bank’s two-year fixed rate savings bond that was offering 3.75 per cent has now reverted to a rate of three per cent and Tesco Bank’s product that paid 3.6 per cent has also been pulled.

Commenting on the launch, Andrew Hagger, personal finance analyst, MoneyComms said: “This latest market leading fixed rate savings deal from Close Brothers Savings is welcome news for savers because in recent months, banks and building societies have been cutting their rates.  Between 29th August 2012 and 5th September 2012, the average rate for a 2 year fixed rate deal fell from 3.15% to 3.06%.”

Gail Johnson, Close Brothers Savings said: “With the launch of yet another highly competitive fixed rate savings product and with a very strong financial performance, we are well positioned to take advantage of the strong demand for attractive savings products in an environment of low returns.”