Making the most of your hard-earned savings is important, so it makes sense to choose the right account to suit your needs. With a range of different savings accounts on the market, understanding the differences between them can help you make sure your money is in the right place. Find out more about fixed rate savings accounts below.
As the name suggests, a fixed rate savings account allows you to earn a fixed rate of interest on your savings for a set period of time, unlike a variable savings account where the interest may increase or decrease with the market.
Your savings could be locked away in a fixed rate account for 1-5 years, depending on the savings account you choose and the bank or building society who is offering it. Most providers won’t let you close your fixed rate savings account or make any withdrawals before maturity.
Having restricted access to your savings may feel daunting, but it may be suitable for you if you’re looking for a higher rate of interest compared to a variable, instant access account. Additionally, a fixed rate of interest gives you a guaranteed return on your investment without worrying about the rate dropping.
A fixed rate account requires commitment and may not be suitable for those who need regular access to their savings. Sometimes, people will split their money between a fixed rate account and an instant access account, which allows them to benefit from higher, fixed interest rates, but still keep some money aside for a rainy day.
It’s important to read the terms and conditions of an account before you open it, to make sure you’re happy with any restrictions in place.
How can the Marsden help?
As Lancashire’s largest building society, we’ve got over 160 years’ experience in helping people reach their saving goals. Our friendly branch teams are always on hand to discuss your options and help find the account that’s right for you.
If you’d like to find out more about our fixed rate savings accounts, please visit our ‘Savings’ page, where you’ll find more details about the fixed rate bond and ISA we currently have on offer.
Savings accounts can be opened remotely by appointment only. If you’d like to arrange a telephone appointment with your local branch, you can find their details on our ‘Find a branch’ page.