Fixed rate with low penalty early closure

s20544

I'm looking for a fixed rate savings account / bond with interest rate of around 3%, for a large sum, with a relatively low penalty for early clsoure.

I may need access to the full account balance at any time after 9 to 12 months has passed. My thinking is that it may be better to look for a 3 to 5 yr fixed account with early closure option and higher interest rate rather than an easy-access/1yr bond/notice-account with lower interest rates.

(In the past Newcastle, First Direct and M&S offered 5yr fixed rate accounts with high interest rates but with only a notice period or £100 penalty for early closure no matter how much time was left until maturity date. These accounts are still on offer but now with rates significantly less than 3% and/or no early closure option).

Perhaps there are some accounts that have tiered interest rates with a higher rate for large sums?

If anyone has spotted an account that I've missed, I would love to hear about it. Thanks

Archi_Bald

You can distribute some £85K over a number of 3% AER current accounts at Santander, Lloyds, BOS and TSB.

s20544

I have got some of those current accounts and regular saver accounts already. I'm really looking for some alternatives to these.

xylophone

I don't think there is anything available that fits your criteria.
http://www.thisismoney.co.uk/money/saving/article-1583859/Best-savings-rates-General-savings--Internet-branch.html

ColdIron

There are a few 3% + fixes but I don't think any of them allow withdrawal even with a penalty
http://moneyfacts.co.uk/savings/fixed-rate-bonds/

YorkshireBoy

2.5% to 2.6% (ish) with Halifax/BoS, but early closure penalties of 270-320 days!

Ifts

Halifax let you close their fixed online saver/fixed saver early (no withdrawals but early closure permitted) but its only 2.75% for a 5 year fix and the penalty is high for early closure (5 year term – 365 days’ gross interest).

http://www.halifax.co.uk/savings/accounts/fixed-term/fixed-online-saver/

s20544

The Newcastle Celebration ISA (3%, 5yr fix with 120 day interest penalty for early clsore) fits the bill . . . .

except it is only open to existing Newcastle members and ISAs.:sad:

http://www.newcastle.co.uk/savings/member-exclusives.aspx

but perhaps it might be useful to some people as it does accept ISA transfers.