With the 3 month LIBOR increasing on a daily basis and now more than double the 0.5% Base Rate, the cost of borrowing from other banks is becoming prohibitive and means more providers are turning to retail deposits as a means of gathering funds.
This is excellent news for savers who are currently seeing a resurgence in fixed savings rates.
Last week AA Savings increased the rate on its 1 Year Fixed Rate Savings Bond to 3.60% and now shares top spot with Yorkshire/Clydesdale Bank and krbs (formerly known as Kent Reliance Building Society).
The AA Bond is available by post with minimum balance of £1 and maximum £5 million and is part of a very competitive range (5 year version pays 4.60%).
Although the product is only available by post, this shouldn’t deter you from bagging this top rate.
Application forms can be found at theAA.com/savings or by telephoning 0845 603 6302
My verdict – HIT