Bank earns 'excellent' rating on savings account that pays £460 interest

United Trust Bank is offering a new on its two-year fixed account, earning an "excellent" Moneyfactscompare rating.

While the bank reduced the rate of returns this week, the UTB Two Year Bond pays an Annual Equivalent Rate (AER) of 4.5 percent, leaving it "competitively" placed in its sector.

The account is aimed at savers with larger sums to invest as it requires a minimum deposit of £5,000 to open.

However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £5,000 deposit is estimated to earn £460.13 over the course of two years.

Fixed-rate savers can be beneficial during the current period of falling rates, as these enable people to lock in an interest rate for a set length of time.

However, they typically impose stricter withdrawal limits on customers, meaning savers should be comfortable investing money without needing to access it during the account term.

Commenting on the deal, Caitlyn Eastell, spokesperson at , said: "This week, United Trust Bank has reduced the rate on its UTB Two Year Bond, now paying 4.5 percent. Despite the reduction, the account competes strongly against other two-year fixed bonds.

"Savers must have a minimum investment of £5,000, however, it would be wise to note that earlier access and further additions are not permitted, so investors may need to ensure they are happy with their initial deposit. Overall, this deal earns an Excellent Moneyfacts product rating."

United Trust Bank's product is one of several competitive two-year fixed savings deals currently available, offering the potential for even greater returns.

JN Bank's Fixed Term Savings Account offers an AER of 4.6 percent. Savers need to invest a minimum deposit of £100 and interest is paid on the anniversary of opening. Up to £500,000 can be invested and withdrawals are not permitted until the term ends.

SmartSave's Two Year Fixed Rate Saver offers an AER of 4.56 percent. Savers need to invest a minimum deposit of £10,000 and interest is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not permitted.

Top-paying fixed bonds are falling month-on-month, a new analysis by Moneyfacts shows.

Ms Eastell said: "Savers who were unable to snap up a shorter-term fixed rate that paid just above the five percent mark may be disheartened to see that they have disappeared from the market entirely for the first time this year, with top rates consistently tumbling across the board. The gap between top short-term and long-term is closing as rates are slashed.

"It is possible that the savings market could be facing more uncertain times ahead, with the fast-approaching Autumn Budget and volatile repricing, which may cause providers to drop rates further.

"Savers who are eager to lock into a guaranteed rate should do so swiftly before they face another plunge."