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6 cracking 1 year fixed rate bonds

6 cracking 1 year fixed rate bonds

Category: Savings
Date: 28/11/2012

Save over the short-term for sweet returns

Locking your money away for up to twelve months can be a great way to achieve a good rate of return on your savings.

If you are willing to tie up your savings for the duration of the term, you can achieve up to 0.45% more compared with the West Brom Building Society WeBSave Plus account which currently sits at the top of the Easy Access (No Bonus) chart.

With the savings market changing on a regular basis, it is wise to check out our best buy tables regularly.

Here are the best one-year bonds:

Top 6 one-year bonds

UBL
United Bank UK
1 Year
Fixed Term Deposit

2.75% AER/Gross
  • Minimum investment £2,000
  • Early access and further additions not permitted
  • Can be operated in branch and by post
See best buys

Penny saysPenny says…
"United Bank UK heads up the one-year fixed rate market with this highly competitive rate of 2.75% on maturity. Savers must be able to place a minimum investment of £2,000 and leave the funds untouched for the twelve month term.

"This account can be opened and operated either in branch or by post by savers aged 18 and over."

State Bank of India
State Bank of India
Hi Return Fixed Deposit

2.70% AER/Gross
  • Minimum investment £1,000
  • Early access and further additions not permitted
  • Savers must open or hold an existing current or savings account with State Bank of India
See best buys

Penny saysPenny says…
"This competitive one-year bond from State Bank of India just pips the Close Brothers Savings Select Gold Fixed Account to second place in the best buy table on account of its lower deposit requirement."

"As with the United Bank UK bond, this deal can be opened or operated by savers aged 18 and over in branch or by post."


Close Brothers Savings
Select Gold Fixed Account

2.70% AER/Gross
  • Minimum investment £10,000
  • Early access and further additions not permitted
See best buys

Penny saysPenny says…
"Designed for savers with at least £10,000 to invest, the Select Gold Fixed Account sits comfortably amongst the other market-leaders in the one-year market.

"Despite being knocked into third place by the State Bank of India High Return Fixed Deposit this bond offers a high rate of return and, unlike the aforementioned deal, does not require savers to open or hold an existing savings or current account."

National Counties Building Society
National Counties Building Society
43rd Issue Savings Bond

2.69% AER/Gross
  • Minimum investment £1,000
  • Early access and further additions not permitted
See best buys

Penny saysPenny says…
"Offering a competitive annual rate with a slightly lower minimum investment of £1,000, this deal is available to savers of all ages.

"This account can be opened in branch, by post or online, although it can also be operated by telephone once up and running."

Bank of Cyprus UK
Bank of Cyprus UK
Bank of Cyprus UK Bond

2.55% AER/Gross
  • Minimum investment £1,000
  • Early access and further additions not permitted
See best buys

Penny saysPenny says…
"This bond from Bank of Cyprus UK pays a competitive rate of 2.55% on maturity and sits just within the top six deals of the one-year bond market.

"Available to savers of all ages, this account can be opened and operated in branch, by post, telephone or online."

Saffron Building Society
Saffron Building Society
One Year Fixed Rate Bond

2.50% AER/Gross
  • Minimum investment £500
  • Further additions not permitted
  • Early access upon account closure, subject to 180 days' loss of interest
See best buys

Penny saysPenny say...
"This one-year bond pays a competitive rate of 2.50% on maturity to savers of all ages with minimum investments of £500. Parents to savers aged under seven must act as signatories.

"Although this bond pays a slightly lower rate compared with the other deals featured in this article, it requires the lowest minimum deposit at £500. Savers can open and operate this account in branch or by post."

Information & Rates correct as at: 28/11/2012

One-year fixed bonds aren't for you if you'll need access

If you think you might need early access to your money then a fixed bond will not be suitable for you.

Usually your money is committed for the term of the bond – particularly shorter term bonds such as in the those above. If you are allowed access to your money, expect to forfeit a sizeable chunk of interest for this privilege.

What is the difference between a fixed deposit and a fixed bond?

A fixed deposit sounds softer than a fixed bond but in practice it's exactly the same.

A bond is an old-fashioned term for a promise, so in the context of a one year bond you are promising to keep your money in that account for a year. In return the savings provider will offer a better interest rate than on different types of savings accounts with customers who are not prepared to take on that commitment.

What next?

Compare one year fixed rate bonds
Search all savings accounts
More money tips

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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