AA 5 Year Fixed Rate Savings Account - online setup, access postal thereafter.
Interest rate (AERs*) 5.15% AER* fixed for five years. Limited availability, it may be pulled anytime.
# Earn a return annually or a regular monthly interest option with a choice of savings terms.
# Invest from £500 up to £5 million in your savings account per investor.
Interest will be paid net of lower rate income tax (currently 20%) unless you register your account with us to receive gross interest (easily done)
Note that your money will be with Birmingham Midshires, a division of Bank of Scotland plc, and protected by UK Government compensation scheme if all goes t#ts up. Read MSE for more info on this.
This sort of interest rate is normally in the form of a bond at the moment, with no wiothdrawals allowed. However, this account is only subject to 'a 90-day loss of interest on the amount withdrawn'. So, even if you withdraw the lot after a year if rates elsewhere go up or you need the money, you are still getting the equivalent of around 3.7% - and beating so-called market leaders such as A&L at 3.15%.
I had some money earning paltry ionterest with Tesco (Tesco money is also with Bank of Scotland!), so set this up in the wife's name as she is a non-taxpayer. Paperwork arrived next day, cheque sent in. That's it.