A fixed rate internet savings account provides customers with a guaranteed rate of interest that will not be subject to any changes for a set period of time, regardless of any outside influences.
As these accounts are handled entirely online, customers may generally expect superior interest rates compared to other standard accounts, as providers do not have to pay for many of the overhead costs traditionally associated with normal in-branch handled accounts.
In exchange for the significant savings that are offered by these types of account, there may be several factors and conditions that should be taken into consideration by customers. Such as:
Deposits
A lot of fixed rate internet savings accounts only require a minimum deposit of £1. However, some providers require a larger minimum deposit from customers before an account can be opened with them. Therefore the best fixed rate internet savings account may be available to customers who can afford to deposit a significant amount.
Withdrawal Charges/Penalties
Depending on the bank in question, customers may be faced with a charge or penalty for withdrawing money from a fixed rate account. Customers should also be on the look out for any notice periods or other conditions they may be subjected to for withdrawing money.
Some of the perks of internet savings accounts with fixed rates include:
- Check your balance and transfer money 24/7
- Set up and manage direct debits and standing orders
- Make payments in minutes to companies or individuals
- Guaranteed rate for the term