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6 of the best long-term bonds

6 of the best long-term bonds

Category: Savings

Updated: 18/08/2017
First Published: 18/08/2017

Fixed rate bonds can be one of the best ways to secure a decent return from your money, but if you really want to secure those growth-generating rates, you'll need to think longer term. Long-term savings bonds generally offer terms of five or more years, and while this may seem like a long time to lock away your cash, the returns could be worth it!

These accounts are best suited to those who don't mind losing access to their money for the trade-off of a better rate, and could be ideal for savers who want their returns to be guaranteed. Happily, fixed rates have been on the rise recently, too, and although you won't be able to find a deal that beats inflation, locking your money away is still your best chance to secure decent returns, which makes it even more important to find the best deal.

Long-term savings bonds can also be perfect for those with big purchases planned in the not so distant future - a wedding or a house deposit, for example - but it's important to be aware of the restrictions. You'll rarely be able to withdraw funds before the end of the term, and with few bonds allowing further additions, you'll have to be comfortable with both the level of investment and the term chosen from the outset.

However, if you're confident you won't need the cash for a few years and are ready to secure a decent return, it's time to get searching. To help you on your way, here are the current top six long-term bonds that could help you get more from your money.


AER
Details

PCF Bank

PCF Bank Ltd

7 Year Term Deposit

2.60% AER

  • £1,000 minimum deposit
  • Rate fixed for seven years
  • Further additions permitted for 14 days from account opening
  • Withdrawals and early access not allowed
  • Can be opened online or by post and then managed by phone as well
  • Interest paid on anniversary and must be paid away

Comfortably taking the top spot is this account from PCF Bank Ltd, the new kid on the savings block - and it's the only standard savings account in the market that can match the current rate of inflation, paying a market-leading 2.60%. You'll need to lock your money away for seven years for the privilege, but if you've got at least £1,000 to invest and want the best possible chance of seeing your cash savings grow, it could be a great option.

AER
Details

BLME

Bank of London
and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.55% AER
  • £25,000 minimum deposit
  • Rate fixed for seven years
  • Further additions, withdrawals and early access not permitted
  • Postal-operated
  • Interest paid on anniversary and must be paid away
  • Linked product: must have or open a BLME current account to hold funds pending investment
  • Sharia'a compliant account

Bank of London and the Middle East secures second place with this deal that pays an expected profit rate of 2.55%. However, it's only available to those with a minimum of £25,000 to invest, and they must be willing to lock away those funds for seven years, too, with no early access permitted. Nonetheless, for those happy with the restrictions - including the linked account requirement - it could be worth it.


AER
Details

Atom Bank

Atom Bank

5 Year Fixed Saver

2.50% AER

  • £50 minimum deposit
  • Rate fixed for five years
  • Further additions allowed for one week from account opening
  • No withdrawals or early access
  • Exclusively available through the Atom Bank smartphone app
  • Interest paid on anniversary

Atom Bank makes the top three with this five-year deal that pays 2.50%, and you only need a minimum of £50 to get started. It offers further additions for a week after the account has been opened, too, but just make sure that you're happy with the final investment, as early access won't be possible from this purely app-operated account.


AER
Details

Vanquis Bank

Vanquis Bank

Vanquis Bank SavingsGo to Site

2.50% AER

  • £1,000 minimum deposit
  • Rate fixed for five years
  • No further additions or withdrawals
  • Account must be opened online before becoming phone, post and internet-operated
  • Access via nominated current account
  • Interest paid on anniversary

Next up is this account from Vanquis Bank that pays a fixed rate of 2.50% from a minimum investment of £1,000. In true fixed rate style, it doesn't permit further additions or withdrawals, but provided you're happy to open it online and are willing to forgo access, it could be a good option for those looking for a term that's less than seven years.


AER
Details

BLME

Bank of London
and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.50% AER

  • £25,000 minimum deposit
  • Rate fixed for five years
  • Further additions, withdrawals and early access not permitted
  • Postal-operated
  • Interest paid on anniversary and must be paid away
  • Linked product: must have or open a BLME current account to hold funds pending investment
  • Sharia'a compliant account

Bank of London and the Middle East has secured another place in the charts, this time with the five-year version of its Premier Deposit Account. It pays an expected profit rate of 2.50%, with all other features mirroring those of its seven-year counterpart.


AER
Details

United Bank UK

United Bank UK

5 Year Fixed Term Deposit

2.41% AER

  • £2,000 minimum deposit
  • Rate fixed for five years
  • Further additions allowed for one week from account opening
  • Early access at manager's discretion, subject to 365 days' loss of interest
  • Can be opened online, in branch or by post, and then becomes branch and postal-operated (accounts opened online cannot be operated in branch)
  • Interest paid on anniversary and must be paid away
  • Access via nominated current account

Just squeezing into the top six is this account from United Bank UK, a five-year deal that boasts a rate of 2.41%, provided you've got a minimum of £2,000 to invest. It comes with an unusual level of flexibility, too, as further additions are permitted for a limited period and there's even the possibility to secure earlier access. The latter is best avoided as it'll result in a hefty loss of interest penalty, but for those who want the peace of mind in knowing they may be able to access their cash if they needed to, this account could be ideal.

Information & Rates correct as at: 17/08/2017

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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