Top News

Hodge Bank has raised the interest rate on its fixed account to 4.52%, earning an "excellent" Moneyfactscompare rating.

The interest rate is fixed for three years and savers can launch the account with a minimum deposit of £1,000.

Fixed savings accounts are becoming more popular during this current period of falling interest rates, as these products enable people to lock in the rate offered at the start of the term.

However, people should ensure they won't need access to their savings before the end of the term, as fixed-rate savings accounts generally don't allow withdrawals.

Commenting on Hodge Bank's new deal, Rachel Springall, finance expert at , said: "Hodge Bank has increased the rate on its Three Year Fixed Rate Bond this week, improving its place in the market.

"Now paying 4.52% gross on its anniversary, the deal may appeal to savers looking for a competitive return over the next three years and happy to lock their money away for the duration.

"The monthly interest option may also entice those looking to supplement their income. Savers will need to invest at least £1,000, but the account does allow further additions within the first 14 days of account opening.

"Overall, the deal earns an Excellent Moneyfacts product rating."

The Bank is regulated by the Financial Conduct Authority (FCA) and up to £85,000 of deposits are protected by the Financial Services Compensation Scheme (FSCS). Up to £1million can be invested in the account.

While Hodge Bank may be offering a more competitive rate, it isn't currently taking the top spot for three-year fixed savings account.

Al Rayan Bank's three-year fixed term deposit, offered through savings marketplace Raisin UK, offers an Expected Rate of 4.6%.

Instead of paying interest to savers, Al Rayan Bank invests customers' deposits in ethical, Sharia-compliant activities to generate a profit. While profit rates are "expected", Al Rayan Bank has said it has always paid at least the profit rate it has quoted to its customers since it was founded in 2004.

Savers need a minimum deposit of £1,000 to launch the account and up to £85,000 can be invested overall. Withdrawals are not permitted until the term ends.

Atom Bank is also offering a competitive Annual Equivalent Rate (AER) 4.6% on its three-year fixed saver.

A minimum deposit of £50 is required to launch the account and up to £100,000 can be invested overall. Interest is paid on the anniversary of opening and withdrawals are not permitted until the term ends.