With the Bank of England Base Rate now sitting at a 14-year high of four percent, high street banks and building societies have been boosting rates across their own savings products, offering savers much higher returns. Al Rayan Bank is now topping the leaderboard of three-year fixed savings accounts.

Fixed-rate accounts help add another level of certainty to savings, as these accounts enable savers to secure an interest rate for a set length of time.

This means the bank or building society cannot change the interest rate during the term of the bond, which may work well for account holders who can afford to invest long-term, without needing to dip into savings.

Al Rayan Bank’s 36 Month Fixed Term Deposit is currently offering an expected profit rate of 4.57 percent.

The bank operates under Shariah principles, which means people earn profit rather than interest on their savings. Applicants must be 16 years of age or over and have a minimum of £5,000 to invest in the account.

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Ms Springall continued: “Our own data shows volatility surrounding fixed bond rates has softened after recent months of uncertainty.

“The average shelf life of fixed bonds rising to its highest level since May 2022, up from 29 days to 48 days, the biggest month-on-month rise in more than two years (December 2021).”

However, she continued: “When providers review their market positions, a standout top rate that sits way above its nearest competition may not be around for long, particularly if offered by a challenger bank that reaches its funding targets.”