Spotlight on: Agribank savings accounts

The deal

Farmers' lender Agri-bank is offering returns of up to 3.6 per cent to savers.

Good points

The bank has launched market-leading fixed rate bonds paying 3.35 per cent for three years, 3.5 per cent for four years and 3.6 per cent for five years.

Bad points

You'll need to be able to lock your cash away for years to get the best returns. But, crucially, deposits are not protected by the Financial Services Compensation Scheme so if the bank goes bust, savers will lose their cash.

Conclusion

Does it matter that you haven't heard of Agribank? Not really as it is a legitimate business, but it does matter that there's no regulatory protection for your cash. Should you take the risk in return for the higher rewards? No.