The Co-op and Britannia increase rates on Fixed Term Deposits

The Co-operative Bank and Britannia will be raising rates on their Fixed Term Deposits on Friday (24 June) by up to 0.4%. These will offer customers a highly competitive rate in-branch and are also available online and via the telephone.

One, two and three year Fixed Term Deposits (FTDs) have been re-priced to offer a better rate of interest to savers. This is an increase of 0.4% for a term of 1 year and an increase of 0.25% for 2 and 3 year terms.

The new pricing follows recent reports from Moneyfacts that the average interest paid on fixed-rate savings appears to be falling as banks and building societies adjust to the continued low base rate from the Bank of England.

James Hillon, Head of Savings at the Co-operative Bank said: "Our decision to re-price bonds has bucked the trend at a time when most banks and building societies are reducing rates on fixed rate savings."

"We want to encourage savers to put money aside for their future and strive to offer competitive rates to our customers."

Michelle Slade, spokesperson for Moneyfacts, said: "The move by The Co-operative Bank and Britannia to increase their bond rates will be welcomed by customers. The rates on offer are now the highest amongst the high street banks and unlike many other providers these top rates can be found in branch."