Cost of living: Why Bank of England has increased interest rates
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The savings product comes with 3.3 percent for a one-year term, rising to 3.45 percent for three years, 3.5 percent for and 3.55 percent for five years. Deposits can be paid in only for the 14 days after the account has been opened, which begins once the application has been accepted.
The saver can make as many payments as they wish from a UK-based current account in their name.
A payment must be made into the Fixed Rate Saver during the 14-day deposit window or the account will be closed.
To open an account, a person must be 18 and be a UK resident, with a current address in the UK and a UK-based current account in their name.
A deposit of at least £1,000 is needed to open the account, and deposits must not exceed the balance of £2,500,000.
A person can cancel their account during the deposit window by contacting Tandem directly, and all their deposits will be returned.
Those who are reinvesting funds held in an existing Fixed Saver can only reinvest the full principal balance from their existing Fixed Saver.
The interest cannot be reinvested and they cannot take out some of the money, and the balance cannot be topped up with additional deposits.
The full principal balance from the existing Fixed Saver will be transferred automatically to the new Fixed Saver on the day the previous account matures.
Money cannot be withdrawn during the fixed term unless the customer gets into financial hardship, which will be assessed on a case by case basis.
Statements will be provided annually and at the end of the fixed term, as well as an annual Certificate of Interest every tax year after the first payment of interest.
Interest is calculated every day based on the amount in the account at the end of the day and will start to be earned once the first deposit and payment have cleared.
The interest is paid into a linked UK current account each year on the anniversary of the deposit window closing.
Customers will be contacted 14 days before the fixed term is due to end to ask what they want to do with the money.
If there is no response by the time the fixed term ends, the account will stay open and interest will be paid at the same rate as the Instant Access Saver.
The account can be closed at any time after the fixed term ends, and the customer will have 30 days notice if the account is to be closed.
If the account is closed this way, the funds will be transferred into the linked current account, or by cheque if this is not possible.
The Bank of England has increased interest rates five times since December, from 0.10 percent, to today’s 1.75 percent.
It is expected to increase base rates again at its next meeting on September 15, potentially up to 2.25 percent.
Professor Nellis, from the Cranfield School of Management, previously told Express.co.uk: “Interest rates are the only instrument The Bank of England has at their disposal to control the economy – there is no alternative.
“They have no choice but to follow the market and continue to raise interest rates, or they risk weakening the pound.”
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