The Cumberland has announced its highest saving rate for over a decade with a new product offering a 5.05 percent return on a five year fixed deal.
The move comes in response to interest rate hikes by the Bank of England and sees the building society offering its first five year deal for savers alongside a number of other improved rates for customers looking for more flexibility.
Someone depositing £20,000 in this account could expect to earn £4,576 in interest over the five year period.
Two other fixed term deals have been launched alongside the headline-grabbing five year fixed rate.
A rate of 4.25 percent is available on a one year fixed product and the two year fixed rate offers a return of 4.75 percent.
Rates on the building society’s flexible saving accounts and ISAs have been increased at the same time.
The Cumberland’s Head of Product, Chris Cairns, said: “We’re offering this five year fixed deal to customers who will be pleased to see that, in a new era of rising interest rates, they can get a decent return on their savings, but may be wondering when those rates will peak and start to fall again.
“We now have a base rate of three per cent which is the highest it has been for 14 years, but people will have seen in the media that there is speculation about where that will end up.
“It would seem we have a little more to go yet with the Bank of England suggesting there will be further increases, but the question is when will it settle down and stabilise.
“Savers using this five year deal guarantee themselves some long-term security that they can enjoy these higher returns until March 2028.”
The Cumberland, which unlike other banks, is owned by its members, the savers and borrowers, is acutely aware that the cost of living crisis will also be concerning customers.
As a result, it is determined to ensure it caters with for those looking for easier access to their funds and more flexibility with a range of competitive savings options.
Mr Cairns added: “We have been passing on more of the Bank of England’s interest rate increases to our customers, but we are also mindful that we need to have the right product mix to support different demands among our customers.
“We want to support customers who can save £10 a month as much as those with a lump sum to put away.
“So we have products suited to those customers who want to have quick access – they like the idea of saving, but may feel that the cost of living crisis might leave them needing to quickly access that money.”
The Cumberland is based in Carlisle and operates 34 branches across Cumbria, southwest Scotland, Northumberland and Lancashire.
It is Cumbria’s largest financial institution with £2.2bn of mortgage lending.
The society went to great lengths to help customers during the Covid-19 pandemic. Those efforts were recognised nationally when it won the ‘Best Customer Experience in the Crisis’ category at the UK Customer Experience Awards 2022.
To find out more about the Cumberland’s mortgages and savings accounts, see the website – https://www.cumberland.co.uk/ – or visit your local branch.