Spotlight: Islamic Bank of Britain deposit account

With inflation at a five-year low, there seems little chance of interest rates rising any time soon. In fact, the Centre for Economic and Business Research expects the base rate to remain at 0.5 per cent until 2011. Savers looking to maximise returns in this low-rate environment may be attracted to a fixed rate account as this is where the highest returns are to be had.

A new account from the Islamic Bank of Britain is the leading two-year deal. Its two-year fixed-term deposit account pays 4.50 per cent on investments of £5,000.

The account isn't restricted to Muslims – non-Muslims can also apply. The IBB is regulated by the Financial Services Authority and is signed up to the Financial Services Compensation Scheme so savers have the same level of protection as with all other UK-registered banks and building societies: the first £50,000 is guaranteed.

However, you are not guaranteed to receive the rate of 4.5 per cent for two years. Also, you cannot access your money during the two-year term.