Scottish Building Society launches 'market-leading' savings rate

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Scottish Building Society has launched a new market-leading savings bond paying 4.91 per cent.

The fixed rate is available through both its branch and online versions, giving savers a guaranteed return until September 26, 2028.

The Fixed Rate Bond 251 can be opened through the mutual's Relationship Centres or by post.

Customers who prefer to manage their savings digitally can choose the Online Fixed Rate Bond 251, available through the Scottish Building Society website and mobile app.

Both accounts offer the same 4.91 per cent rate and share the same maturity date. The products became available on August 20.

Savers can also secure a Cash ISA from Scottish Building Society that pays 4.51 per cent interest rate.

The mutual's 2 Year Fixed Rate E-ISA, Issue 112, matures on August 24, 2028. The rate remains fixed throughout the term, regardless of changes elsewhere in the savings market.

Customers need at least £500 to open the account and can deposit up to the £20,000 annual ISA allowance.

However, savers have only 14 days from opening the account to add their money. Once that window closes, no further deposits can be made, even if they have not used their full ISA allowance.

Transfers from existing ISAs are accepted, allowing customers to bring savings across from another provider. Transfer instructions must also be submitted within the same 14-day window.

The account must be opened and managed online through Scottish Building Society's SBS Online platform.

To illustrate potential returns, a £1,000 deposit would grow to £1,045.10 after twelve months, yielding £45.10 in interest.

A £10,000 starting balance would generate £451.00 over the same period, reaching £10,451.00.

For those depositing larger sums, £25,000 would produce £1,127.50 in interest after a year, while a £50,000 balance would earn £2,255.00.

Savers can also secure a market-leading rate of 4.71 per cent with UBL UK's new one-year fixed Cash ISA.

The account could appeal to those willing to lock away at least £2,000 in exchange for a guaranteed return.

The account pays 4.71 per cent gross and 4.71 per cent AER, with interest paid when the one-year term ends. Customers can invest up to their available ISA allowance.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: "The one-year option fares best and takes the market-leading position paying 4.71 per cent."

Savers can continue adding money for 10 days after opening the account.

Transfers from existing Cash ISAs are also accepted, while customers can divide their Cash ISA savings between several products in UBL UK's range.

However, early access is only available by closing the account and comes with a penalty equal to 90 days of interest. Transfers to another provider before the term ends are subject to the same charge.

Ms Eastell warned that early access "should be considered carefully", but said savers seeking tax-free returns may find the account "an enticing deal".

The account can be opened online, through UBL UK's mobile app, by post or in a branch.

Customers must be at least 18, and the product received an "Excellent" rating from Moneyfacts.