Savers prepared to fix should sign up for the 4% club

Savers who are happy to lock their savings into a two or three year fixed rate savings bond should accept nothing less than being a member of the ‘four per cent' club according to Cater Allen Private Bank.

The bank's research has shown that of the 153 two and three year fixed rate savings products on the market, the average headline rate is just 3.19 per cent. Indeed, for two year products this falls to just 3.12 per cent, while three year fixed products have an average headline rate of 3.26 per cent.

Despite this, for those willing to hunt around for the best buys there are some products offering a headline rate of four per cent or even above. These products though equate to less than 13 per cent of the two year savings bonds available in the market, and less than 10 per cent of three year savings bonds. However, despite being much harder to find they do offer a potential return higher than the average rate of their counterparts.

Specifically to meet this customer need, Cater Allen has recently launched two highly competitive fixed rate savings bonds offering customers a guaranteed long-term return on their savings. These new bonds pay up to 4.11% AER, depending on the level of investment made.

Sally Ann Watts, Head of Banking Products at Cater Allen Private Bank said: "When it comes to fixed rate savings products, the only things that matter to investors are the rates and the security of the bank they deposit with. At the current point in time, when interest rates on savings accounts are so low, people really do need to be making their money work for them by signing up to be a member of the four per cent club.

"Not only are the Cater Allen Savings Bonds offering headline rates of up to 4.11 per cent but with a minimum deposit of just £5,000 they are also highly accessible and offer security from the backing and strength from the world's most profitable bank, Santander."

The Cater Allen two and three year bonds are available to deposits over £5,000.

Customers can apply for the new bonds by visiting caterallen.co.uk/collection