Average rate for two year fixed rate deposit accounts up 0.23%

The average rate for a two year fixed rate deposit account (with a minimum deposit of £10,000) has increased from 3.16% in January 2011 to 3.37% at the end of October 2011, according to research commissioned by Close Brothers Savings. The average rate for deposits of £500 or more is 3.36%.

The research reveals that there are currently only two accounts paying 4% or more and that almost a quarter (24%) of all two year fixed rate deposit accounts for balances of £10,000 or more currently pays 3% or less.  There are no two year fixed rate deposit accounts paying below 2%.

Close Brothers Savings, part of Close Brothers Group plc, has launched a new Premium Gold fixed term deposit account paying a fixed rate of 4.25% AER.  The rate is fixed for two years with interest paid annually and at maturity, with a minimum investment of £10,000.  Applications received with funds for this new account will be accepted from Monday 14 November.  This is a limited offer, subject to availability.

Close Brothers Savings believes that given the market expects continued low Bank of England base rates, investors will continue to look for a safe haven for their savings. Close Brothers, the specialist financial services group, has a strong capital position with a core tier 1 ratio of 13.1% and total capital ratio of 14.9% (at 31 July 2011).

Gail Johnson, Close Brothers Savings said, ‘This research shows that savers are continuing to look for secure places to deposit their savings over two years.  Fixed rate deposit accounts offer certainty at a time when markets remain volatile.’

Andrew Hagger, MoneyNet, said, ‘Savers coming off existing fixed rate bonds are anxious to lock in to the best deals without having to tie their money up for an extended period. This latest best buy deal from Close Brothers Savings will fit the bill perfectly, particularly as it is currently paying a higher return than the best four year fix on the market.  At more than 0.85% above the average two year fixed savings rate and a full quarter point ahead of its nearest competitor there will be no shortage of takers for this product.’

The launch of the new account follows continued high demand for Close Brothers Savings’ range of products.  To apply for the new Close Brothers Savings Premium Gold account, visit closesavings.co.uk.