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A UK-based digital bank has increased the interest rate on its five-year savings account and earned an "excellent" rating from a major comparison site. Chetwood Bank, a challenger bank headquartered in Wrexham, Wales, increased rates on various Fixed Rates Savings Accounts this week.

The rate for its five-year-option has been upped from 4.50% to 4.55%, with Moneyfactscompare.co.uk describing it as a "market leading offering". The account is open to applicants 18 and above with a minimum opening amount of £1,000. Further additions can be added for 14 days after the account is opened.

Funds will then be effectively locked within the savings account for the five year term.

The deal was included in Moneyfactscompare's Pick of the Week which looks at the best new products or rate changes in the consumer finance market.

Commenting on the new offering, Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: "This week, Chetwood Bank has increased the rate on a selection of its Fixed Rate Savings Accounts.

"The five-year option is one that fares best and now pays a market-leading 4.55%. This deal may be ideal for savers who are looking to guarantee their returns in the long-term.

"Savers will need to invest at least £1,000, however, there are no maximum limits, and further additions are permitted for 14 days from account opening which may add to its appeal and entice those with significant balances.

"As is the case with many fixed bonds, withdrawals are not permitted, so consumers should be prepared to lock away their cash for the full term.

"On assessment, this account receives an Excellent Moneyfacts product rating," she added.

You can find out more about Chetwood Bank's savings accounts and full terms and conditions on their website.