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 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 ro be guaranteed. Happily, fixed rates appear to be bucking the rate-cutting trend, too, and you're also more likely to find a inflation-beating deal by locking your money away - such accounts are still few and far between, but this makes it even more important to secure the best return possible.
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.
This account from Ikano Bank comfortably takes the top spot by paying the market-leading (and inflation-beating) rate of 2.35% to those with a minimum of £1,000 to invest. It allows further additions for a limited period, but as is common in the sector, early access won't be allowed, so you'll need to be confident about locking your final investment away for the full five years.
In second place is this account from Milestone Savings that pays an inflation-matching expected profit rate of 2.30% from a minimum investment of £10,000. This Sharia'a compliant account doesn't permit further additions or withdrawals, but for those with a decent savings pot who are willing to forego access, it could be a good option.
Just making the top three is this deal from Secure Trust Bank, a five-year account that pays a rate of 2.26% from a minimum deposit of £1,000. It allows further additions for a limited period, but withdrawals and early access again won't be allowed, so it'll only be suitable for those comfortable with a five-year commitment.
Next up is this five-year account from Paragon Bank that pays 2.25% on a minimum investment of £1,000. Fairly 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.
Bank of London and the Middle East secures a place in the top five with this deal that pays an expected profit rate of 2.25%, provided you've got a minimum of £25,000 to invest. It's a hefty deposit requirement, but for those happy with the restrictions - both the typical access restrictions and linked account requirements - it could be worth it.
Just squeezing into the top six is this account from Atom Bank, a relative newcomer to the savings sector, boasting a five-year deal that pays 2.15%. It requires a minimum deposit of just £50 and allows further additions for a limited period, so if you're comfortable with the fact that you can only operate it by smartphone app, it could be a viable home for your long-term savings.
Information & Rates correct as at: 12.04.2017
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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