Two up and coming challenger banks – Charter Savings Bank and Vanquis Bank – are offering market-leading interest rates on their 12-month savings accounts.
Charter Savings Bank, which is based in Wolverhampton, opened this year, and its 12-month fixed rate offering will see savers paid two per cent interest, as long as they open an account with a minimum of £1,000.
The account has to be opened and managed online, and any interest generated is paid annually.
The bank also has a monthly interest option, but a 1.98 per cent rate is given instead of two per cent.
Products offered by the bank are also covered under the Financial Services Compensation Scheme, up to £85,000.
Meanwhile, Vanquis Bank, which is based in Yorkshire, offers a wide range of fixed-rate deals, including a three-year savings account which offers a 2.46 per cent rate.
The account can be opened with £1,000 and managed via the telephone or online.
Savers with the bank are also covered by the FSCS up to £85,000 in an individual’s account.
Like the Charter Savings Bank, it offers an annual and monthly option for interest payments.
However, those choosing the monthly interest option will receive a slightly lower rate of 2.43 per cent.
Elsewhere, it has increased the rate on its one-year fix to 1.86 per cent.