Savers can get 2% interest on cash, but you can’t access it for six months | Personal finance | Finance
One of the savings accounts offered by Shawbrook Bank is readily available to customers who want a solid fixed rate. The bank’s second issue of six-month fixed rate bonds offers those looking to improve their finances a rate of 2%. However, there are stipulations as to what savers can do with the money once they open the account.
To claim any money acquired through the account, Shawbrook customers will need to lock their money for a specified period of time to get the competitive rate.
The bank’s offer requires customers to wait six months before accessing their savings account.
Specifically, the six-month fixed-rate bond can be opened with a minimum balance of £1,000 and a maximum balance of £2,000,000.
The account’s fixed rate cannot be changed and is calculated daily, with interest paid on the anniversary date of the initial deposit.
READ MORE: Couple in shock as they realize they’ve spent £2,000 on a single trip to the museum
According to Shawbrook, savers who are concerned about not having easy access to their money should consider whether this fixed rate account is right for them.
On its website, the bank said, “In exchange for not making any withdrawals during the fixed term of six months, we guarantee to pay 2% AER.
“If you’re happy to lock in your money longer, you might get a higher interest rate.
“Remember that if you need to get your hands on your money quickly, you cannot withdraw from this account until the end of the fixed term.
DO NOT MISS :
“If you think you need your money before the end of the term, our Easy Access account might be right for you. Take a look at our comparison table to see all the options.
Inflation has reached 9%, putting further pressure on banks to offer competitive rates to their customers despite a struggling market.
Although the Bank of England has raised the base rate, banks have been criticized for not passing the rate hike on to their customers through their savings products.
Michelle Stevens, savings expert at finder.com, explained what savers should be aware of regarding the current increases in the rate of inflation.
“Although no savings account rate currently beats inflation, and it is unlikely to do so in the short term, consumers should always seek the best that the savings market has to offer. to offer.”
In addition, the financial expert explained that fixed rate offers from banks are likely to be the main offer on offer going forward until the economy gets back on its feet.
She added: ‘This will likely take the form of limited-time promotional offers on interest rates, ‘regular savings accounts’ where you commit to putting money aside each month, or ‘ “Fixed Term Savings Accounts” where money is locked in for a set period of time and withdrawals are not permitted.
“With a variety of different savings options available depending on how easily they need to access their funds, savers should assess whether account terms meet their needs before committing to to inscribe.”