Close Brothers Savings has launched a new three-year Fixed Rate Cash ISA paying 5.15 per cent interest, earning an “excellent” Moneyfacts rating.

The account is aimed at savers with more sizeable sums to invest as it requires a minimum deposit of £10,000 to open.

However, savers can expect to see sizeable returns. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £515 over the course of a year.

The account is now taking a “prominent” position in the top tables, according to Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk.

She said: “Close Brothers Savings has launched a new Three Year Fixed Rate Cash ISA this week. Paying 5.15 per cent, the account takes a prominent position within the top 10 when compared against other fixed ISAs and may appeal to savers who are prepared to lock away their cash for an extended period to receive a guaranteed return.”

However, she noted that early access is permitted but will be subject to 270 days’ loss of interest.

Ms Eastell added: “Savers will need £10,000 to invest but will be glad to know that they can make further additions for 10 days from account opening. Overall, the deal earns an Excellent Moneyfacts product rating.”

While Close Brothers Savings may be offering an attractive deal, it isn’t quite taking the top spot. Zopa’s Smart ISA marginally beats with an AER of 5.16 per cent.

The account can be opened with just £1 by savers aged 18 and over via the Zopa app. Zopa’s smart ISAs are flexible and allow money to be withdrawn and replaced in the same tax year without affecting their allowance.

Castle Trust Bank and Cynergy Bank are also offering AERs of 5.15 per cent. Savers need a minimum deposit of £1,000 to launch Castle Trust’s Fixed Rate e-Cash ISA and early access is subject to a 270 day-loss in interest.

Savers need a slightly smaller deposit of £500 to open Cynergy Bank’s three-year fix, and early withdrawals are subject to 180 day’s loss in interest.

Commenting on the current high-interest environment, Alice Haine, personal finance analyst at investment platform Bestinvest said: "Consider carefully where you stash [your savings], as too much held in a high-interest savings account can see people breach their Personal Savings Allowance, making them liable for tax charges on the interest they earn.

“Increasing numbers of savers are getting pulled into the tax net, caught out by higher savings rates and the frozen allowance, which has remained static since 2016.

“Instead, up to £20,000 of savings could be stashed in more tax-efficient options such as an ISA, with an emergency pot in a Cash ISA and any excess money invested in a Stocks & Shares ISA.”

She noted: “It’s worth remembering that while a gloomy economic outlook can hurt people’s finances, it can also be a good time to invest with the potential for some investments to be available at a bargain price.”