Barclays Wealth, part of UK-listed banking group Barclays, has launched a new savings product offering an interest rate of 3 per cent for a fixed term of 12 months.

The 3 per cent Deposit is open to both new and existing clients, requiring a minimum investment of £25,000 ($35,431); there is no upper limit.

The Bank of England’s current interest rate is 0.5 per cent, and Barclays Wealth believes that its 3 per cent Deposit product will prove attractive to those considering opening a savings account.

“With base rates at historic lows, savers with accounts who want to keep part of their savings in cash, have had to look far and wide for a decent return over the next 12 months,” said Peter Horrell, managing director, Barclays Wealth Intermediaries & International.

The 3 per cent Deposit is part of a suite of cash and investment products recently launched by Barclays Wealth which includes three and five years fixed income account at 4 per cent, and a FTSE defined return account. 

Barclays Wealth has a presence in London, Geneva, Monaco, Dubai, Abu Dhabi, Singapore, and Hong Kong.  Barclays Wealth’s assets under management stood at £145 billion ($203 billion) on 31 December 2008.