Zenith Bank has launched a new three-year fixed rate savings account with 4.35 percent interest, earning an “excellent” Moneyfactscompare rating.

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 Zenith Bank’s new deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week Zenith Bank (UK) Ltd has launched a handful of new Fixed Term Deposits with Raisin UK.

“The account which fares best is the Three Year Fixed Term Deposit. It now pays an appealing 4.35 percent and pays a top-10 rate.”

Ms Eastell noted that the account may appeal to savers looking for a guaranteed return in the longer term. She continued: “The account requires a minimum £1,000 investment, with interest paid yearly.”

However, she pointed out: “As is the case with many fixed-term accounts, early access and further additions are not permitted with this account, so savers will need to plan carefully from the outset.”

“Overall, the account receives an Excellent Moneyfacts product rating.”

While Zenith Bank may be offering a more competitive rate, it isn’t quite topping the board in the three-year fixed rate sector. GB Bank Three Year Fixed Term Deposit, launched through Prosper, offers an Annual Equivalent Rate (AER) of 4.6 percent.

Savers can launch the account with a minimum deposit of £20,000 and interest is paid annually. Up to £250,000 can be invested overall and withdrawals cannot be made until the term ends.

For those with smaller amounts to invest, GB Bank is offering a three-year fix with an AER of 4.55 percent on a minimum deposit of £1,000. Interest is paid annually on up to £85,000, and withdrawals are not permitted.

Birmingham Bank’s Three Year Fixed Rate Bond (Issue 11) falls just behind with an AER of 4.53 percent. Savers can get started with a minimum deposit of £5,000 and up to £250,000 can be invested overall. Interest is paid on the anniversary and withdrawals cannot be made until the term ends.