In an ultra-low interest rate environment, it is rare to find a savings account that can make you some money. The Ford Money Fixed Saver 2 Year account not only has a competitive interest rate but also a reasonable minimum balance. Ford Money even guarantees you will receive its best available rate right up until you make your first deposit.
However, with an account like this, there is always a trade-off. In this case it’s no withdrawals after the initial 14-day period. So you need to be sure that you are happy to tie your money up for the full two-year term.
What I like
- Competitive interest rate – Earning interest on savings in recent years has been a struggle. While Ford Money’s rate of 0.70% is not going to blow you away, it is right up there with the top rates available in this category. If you deposit £1,000, then your balance will increase to £1,014.05 over the two-year term.
- Monthly or annual interest – Typically, you only feel the benefit of earning interest when the account anniversary rolls around. However, with the Ford Money Fixed Saver 2 Year account, you can choose between receiving interest monthly or annually. Interest is calculated daily, but it is completely up to you whether you want to receive it little and often, or wait until the end of the year to get it in one go.
- Minimum deposit – The account has a minimum deposit of £500, which is very reasonable. Typically, two-year fixed saving account minimum deposits tend to be slightly higher than this.
- Unlimited deposits – You can make as many deposits as you like in the first 14 days after your account application. That is, up to the maximum amount of £2m. So if you need to move money around in order to deposit into the account, you have a bit of space and time in which to do that.
- Best-rate guarantee – Ford Money promises that you will get its best available rate, even if it’s after you’ve applied for your account. So if the product rate increases before you make your initial deposit, you can still secure the higher rate even though you are not a new customer.
What could be improved
Withdrawal restrictions – Everybody expects that with a two-year fixed-rate saver you won’t be accessing your money during the term of the product. However, with some accounts you can still make withdrawals if you are happy to pay a hefty penalty. Not with this account. The only two ways that you can withdraw money or terminate the account within the fixed term is if the account holder dies, or if Ford Money makes any changes to the agreement that are to your disadvantage.
How does it stack up?
When compared against other two-year fixed-rate savers on the market, the Ford Money Fixed Saver 2 Year account holds its own. Its interest rate is right up there in the mix, and the ability to have this interest paid monthly or annually is a real plus.
Its minimum deposit amount also makes it very accessible, coming in just below what most accounts of this type require.
The account management side of things is also pretty solid. Everything is done online, and the 14-day cooling-off period is pretty typical.
However, the restrictions around withdrawals are very tight. If you really did need to access your money during that two-year period, you would struggle to do so. With other accounts could you take the hit in loss of interest or by paying a penalty charge, but with the Ford Money Fixed Saver 2 account, that isn’t even an option.
- You must be aged 16 or over.
- Applicants must be a UK resident or have a British Forces Post Office (BFPO) address.
- You will be required to provide a mobile number and valid email address.
- You must also have a UK bank or building society account which can be your nominated account.
How to apply
You can open the account online or via the telephone. Just make sure that you have all the necessary information to hand like your bank or building society account number and personal details.
Is Ford Money Fixed Saver 2 Year right for you?
If you are looking for somewhere to lock away a lump sum of money and let it do the work for you, then the Ford Money Fixed Saver 2 Year account could be a good fit. Its relatively high interest rate, and the option to have interest paid monthly or annually, puts it firmly in the mix as one of the best accounts of this type on the market currently.
However, if you at any point think you will need to access your savings during the two-year term, then a different type of account would probably suit you better. Ford Money makes it very clear that once the initial 14-day period is over, you won’t be able to access your savings until the two years are up.