6 of the best long-term bonds - Savings - News - Moneyfacts

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6 of the best long-term bonds

6 of the best long-term bonds

Category: Savings

Updated: 06/09/2016
First Published: 06/09/2016

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 bonds generally offer terms of five or seven years, and while it 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 guaranteed returns, particularly in the current environment. Savings rates are being cut and deals withdrawn at an alarming pace, so by fixing now, you can be confident that you're getting the best deal possible, before rates fall even further.

Long-term 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 top six long-term bonds of the moment that could help you get more from your money.


AER Details

Bank of London and the Middle East
Premier Deposit Account
2.20% AER
  • £25,000 minimum deposit
  • Rate fixed for five years
  • Further additions, withdrawals and early access not permitted
  • Can be opened online before becoming post and internet-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

This account from Bank of London and the Middle East comfortably takes the top spot by paying an expected profit rate of 2.20%, provided you've got a minimum of £25,000 to invest. It's a hefty deposit requirement, but you'll only have to wait for five years to access your money, so it could well be worth it.


AER Details

Bank of London and the Middle East
Premier Deposit Account
2.20% AER
  • £25,000 minimum deposit
  • Rate fixed for fseven years
  • Further additions, withdrawals and early access not permitted
  • Can be opened online before becoming post and internet-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

BLME has also secured second place with the seven-year version of Premier Deposit Account, which interestingly, offers the same expected profit rate as the five-year! All other terms mirror that of the five-year counterpart, so it could simply come down to how long you're looking to lock away your money for.


AER Details

Yorkshire Bank
Retail Term Deposits
2.00% AER
  • £2,000 minimum deposit
  • Rate fixed for five years
  • No further additions or withdrawals
  • Account can be opened in branch, by post or by phone. It can then be managed in the same way as well as online
  • Interest paid on anniversary and must be compounded

Just making the top three is this account from Yorkshire Bank, which pays 2.00% on a minimum investment of £2,000. As is common in this sector, further additions and withdrawals won't be permitted, so savers will need to be confident they can afford to forego access to their money for the whole term.


AER Details

Clydesdale Bank
Retail Term Deposits
2.00% AER
  • £2,000 minimum deposit
  • Rate fixed for five years
  • No further additions or withdrawals
  • Account can be opened in branch, by post or by phone. It can then be managed in the same way as well as online
  • Interest paid on anniversary and must be compounded

Next up is this account from Clydesdale Bank, which mirrors that of Yorkshire Bank: it pays 2.00% from £2,000 and doesn't permit further additions or withdrawals, but can be opened and operated via several channels. The decision could therefore come down to something as simple as which branch is in the saver's vicinity.


AER Details

Shawbrook Bank
5 Year Fixed Rate Bond Issue 23
2.00% AER
  • £5,000 minimum deposit
  • Rate fixed for five years
  • Further additions allowed while issue remains open
  • No cash transactions
  • No withdrawals or early access
  • Account can be opened online or by post and then managed in the same way
  • Interest paid on anniversary

Shawbrook Bank secures a place in the top five with this five-year deal that pays 2.00% on a minimum investment of £5,000. Unusually in this sector, further additions are permitted for a limited time, but early access won't be possible. Savers must therefore be certain that they're happy with their overall investment and the length of the term.


AER Details

Bank of London and the Middle East
Premier Deposit Account
2.00% AER
  • £25,000 minimum deposit
  • Rate fixed for four years
  • Further additions, withdrawals and early access not permitted
  • Can be opened online before becoming post and internet-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

BLME has done it again with a third account making the charts, this time the four-year version of Premier Deposit Account which just squeezes into the top six with an expected profit rate of 2.00%. All other requirements remain the same as its chart-topping cousins, and as it's the only four-year deal in the charts, you won't need to lock away your cash for too long.

Information & Rates correct as at: 06.09.2016

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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