Savers can get 2.5% interest on a one-year fixed bond by using a platform

The best one-year fixed rate savings deal hit 2.35 per cent this week, but savvy savers can do even better by using a savings platform.

Hargreaves Lansdown’s cash savings platform, Active Savings, is now offering a 12-month fixed rate deal from Kent Reliance paying 2.36 per cent, which increases up to 2.56 per cent when you factor in the money from its cashback offer.

This would amount to the highest one-year rate seen anywhere in the market for more than five years. 

It is also three times higher than the best one-year deal this time last year, which paid just 0.85 per cent.

Savers depositing £10,000 or more with Kent Reliance’s 2.36 per cent deal, and signing up via the Active Savings platform, are eligible for at least £20 cashback.

This means someone putting £10,000 into the account for the first time could effectively earn a one-year rate of 2.56 per cent – leapfrogging the best buy on our independent best buy savings tables.

It’s worth noting that the amount of cashback received depends on how much is put in. 

For example, those putting in £10,000 will secure £20, whilst those putting in £80,000 or more will secure £100.

However, the biggest percentage point rate boost on savings comes at £10,000. 

Elsewhere, the savings platform Raisin is currently offering a £25 welcome bonus to This is Money readers if they open a new Raisin Account via this link or any link originating from our website.

It offers savers the chance to boost their savings by £25 when they open and fund an account on its marketplace with a minimum of £10,000.

The best one-year fixed rate deal offered on the platform via Gatehouse Bank currently pays 2.30 per cent. After the £25 bonus, savers could effectively secure a 2.55 per cent rate.

With both platforms, savers’ deposits will be protected by the FSCS up to £85,000 per banking licence, or in the case of joint accounts, up to £170,000.

There are also no charges for setting up an Active Savings account or a Raisin account, unlike with some other platforms.

To qualify for the Hargreaves Lansdown deal, savers need to open an account by 30 June this year, add at least £10,000 by debit card and choose their savings product within 60 days.

If a balance drops below the cashback qualifying amount within six months, Hargreaves Lansdown may reclaim the cashback.

Should you opt for a fixed savings account?

The temptation for savers to lock their money into a fixed rate account is growing month-by-month.

With inflation at 9 per cent and forecast to rise further, it’s more important than ever for savers to get their cash working harder. 

This time last year the best easy-access rate paid 0.50 per cent and the best one-year fixed rate paid 0.85 per cent.

At the start of this year that gap had widened from 0.35 per cent to 0.70 per cent. The gap now stands at just shy of 1 per cent.

Tom Higham, head of HL Active Savings, said: ‘The additional reward for giving up access to your savings is increasing, and for 12-month fixes it now stands at 0.99 per cent.

‘A little over 6 months ago this additional reward for fixing for a year was 0.50 per cent.

‘What this shows is that banks have been relatively quick to pass on rate increases to their fixed term products, but are moving much slower on easy access repricing.’

However, whilst better returns are achievable by fixing, those who may need instant access to their cash – perhaps for a big purchase or in case of an emergency – should stick to an easy-access deal.

Savers may also want to remain flexible given that rates are expected to continue to rise.

The Bank of England increased the base rate to 1 per cent in May. The next meeting is on 16 June, and the committee is expected to raise rates again.