Earn a fixed interest rate of 4.5% on your savings over a three-month period with this fixed-term savings account offering.
The online savings platform Prosper has announced a new offering, a 4.5% fixed-term deposit account with a term of three months, provided by Santander International. This account is an attractive option for those seeking a reliable fixed return without a long-term commitment.
The account's interest rate of 4.5% per annum is fixed for the duration of the three-month term. Interest can be paid either at maturity as a lump sum or periodically (monthly or annually). It's important to note that receiving interest as a lump sum might exceed the personal savings allowance in a given tax year, potentially leading to tax implications. Opting for monthly or annual payments could help spread the interest income and reduce the tax impact, although it does not compound interest.
For those seeking a higher headline rate, it's worth considering Chip's account as a tax-free, flexible alternative. Chip currently offers the best rate for cash Isas at 4.7%, but this includes a 1.66% bonus for the first three months. After the bonus period, the rate drops to 3.04%.
It's essential to remember that the Santander International account is not an Individual Savings Account (Isa), so savings are not tax-shielded. Only the interest earned from the 4.5% portion of the Prosper account is subject to tax. However, HMRC treats the 0.75% boost from Prosper as a type of cashback and does not consider it as taxable income.
Interestingly, over 20 savings providers have slashed their variable savings rates since the Bank of England cut the base rate. This move highlights the value of fixed-term accounts like the one offered by Prosper and Santander International.
For more details on the Prosper account, you can find information on the platform about no fees on 30 funds and an offer for £20 off motoring. Additionally, there is an Investing Isa offer available, with further details to be found.
In conclusion, the Santander International 4.5% three-month fixed savings account via Prosper is a competitive offering for short-term savers seeking a fixed return. The account is accessible through the online savings platform Prosper, which offers savings accounts from various banks at competitive rates.
This Santander International 4.5% three-month fixed savings account via Prosper could be an ideal choice for those who prefer a short-term commitment with a reliable fixed return, as it is offered through the online platform Prosper that provides various finance options, including personal-finance investments. To maximize one's personal-finance management, investors might consider choosing between receiving their interest payments periodically or as a lump sum at maturity, as the former strategy can help manage tax implications.
