High street bank Abbey has increased the interest rate on its Fixed Rate Monthly Saver account to seven per cent gross per annum.
The new offer is available to both new and existing Abbey customers and offers a range of benefits for those looking to save a fixed amount, between £20 and £250 a month, into their account.
One such benefit is that missed payments and withdrawals do not automatically close the account, although an interest penalty is applied, which means that earnings for that month are reduced from the regular rate to 0.75 per cent, but only for that month.
"This is a straightforward offer, which gives great value, offers flexibility and is available to anyone," said Reza Attar-Zadeh, head of banking and savings at Abbey.
"While other banks default to online accounts, current accounts and in some cases poor paying savings accounts, Abbey offers customers the only default account with the same type of savings terms as the Fixed Rate Monthly Saver account.
"We know people want a good rate of interest and we urge everyone to shop around to get the best rate," he added.
Following the completion of the initial 12-month term, the savings are automatically transferred into Abbey's Monthly Saver account, which pays 4.75 per cent gross interest per annum.To read more about banking, click here.
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