Icesave has launched a one-year fixed-rate savings account offering 7.01 per cent gross interest where interest is paid at maturity and 6.79 per cent (7.01 per cent AER) where interest is paid monthly.

The new account means a guaranteed high fixed-interest rate for one year for investors, who can save a lump sum of between £1,000 and £2 million.

The account is designed for savers who have a lump sum they can save for a fixed term and, as such, no additional deposits, withdrawals or closures are allowed during that period. Investment can be made by transfer from an Icesave online easy access savings account, by cheque, the CHAPS electronic payment system or direct debit transfer from a nominated account.

Mark Sismey-Durrant, managing director of Icesave, says, ‘This new account enables investors to take advantage of the current high interest rates and lock-in returns for a year. It’s also great news for those seeking a guaranteed level of monthly income.’

The minimum amount needed to open and maintain an Icesave Easy Access Savings account is £250 or £1,000 for a fixed-rate savings account. The maximum amount allowed in any single account is £2 million.

For more information visit www.icesave.co.uk