6 of the best three-year bonds - Savings - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

6 of the best three-year bonds

6 of the best three-year bonds

Category: Savings

Updated: 02/11/2017
First Published: 01/11/2017

Fixed rate bonds are one of the best ways to secure a decent return from your cash, but the thought of locking your money away for years on end can understandably be daunting. So why not compromise - what about a three-year bond?

Take a look at the best savings rates and you'll see that there are plenty of medium-term accounts that can help you secure growth-generating rates, and three years could be the ideal compromise. Your returns are guaranteed, too, unlike with a variable rate account, but it's important to be aware of the restrictions.

In particular, most fixed rate bonds won't allow you to make further additions or access your funds early - and if they do they could penalise you heavily - so you'll need to be confident you won't need your chosen investment for the full three years.

You also need to make absolutely certain that you're choosing the best savings account for your needs, and we're happy to help! Here are the current top six three-year bonds that could help you secure a decent return.


AER
Details

Al Rayan

Vanquis Bank

Vanquis Bank SavingsGo to Site

2.25% AER

  • £1,000 minimum deposit
  • Three-year bond
  • No additional deposits or early access
  • Must be opened online but can then be operated by post and phone as well
  • Interest paid on anniversary

Vanquis Bank takes the top spot with this account that pays 2.25% from a minimum deposit of £1,000. It requires a minimum investment of £1,000, after which further additions won't be permitted and nor will early access, so savers must be sure they're happy with their overall investment and the length of the term.

AER
Details

BLME

Bank of London and the Middle East (BLME)

Premier Deposit AccountGo to Site

2.25% AER
(expected profit rate)
  • £25,000 minimum deposit
  • Rate fixed for three 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 actually pays the same rate as Vanquis Bank, but occupies second-place by virtue of the higher minimum deposit of £25,000 that it requires. Savers must also be willing to open a linked current account, but for those with a decent savings pot the expected profit rate of 2.25% that is on offer will certainly appeal, particularly if you prefer to manage your accounts by post.


AER
Details

Ikano Bank

Ikano Bank

Fixed 3 Year Saver

2.21% AER

  • £1,000 minimum deposit
  • Rate fixed for three years
  • Further additions allowed for 14 days after opening
  • Early access not permitted
  • Internet-operated
  • Interest paid on anniversary
  • Savings of up to £85,000 per person protected under the Swedish Depositor Compensation Scheme

Just making the top three is this account from Ikano Bank that pays 2.21% on a minimum investment of £1,000. Additional deposits are allowed for two weeks after opening, but as funds cannot be accessed during the term, the three-year commitment is again essential. The account must be opened and operated online.


AER
Details

NS&I

NS&I

Investment Guaranteed Growth Bond

2.20% AER

  • £100 minimum deposit up to a maximum of £3,000
  • Rate fixed for three years
  • No further additions
  • Withdrawals permitted on 90 days' loss of interest
  • Internet-operated
  • Interest paid on anniversary and must be compounded

Next up is the Guaranteed Growth Bond from National Savings & Investments, an account that pays 2.20% from a minimum investment of £100. It doesn't permit further additions, but withdrawals are allowed, subject to a 90-day loss of interest penalty. It should be noted that savers can only invest a maximum of £3,000, but it could be perfect for those with a small savings pot, particularly given the Government backing.


AER
Details

Paragon Bank

Paragon Bank

3 Year Fixed Rate Savings Account

2.20% AER

  • £1,000 minimum deposit
  • Rate fixed for three years
  • Further additions allowed for five days from account opening
  • No withdrawals or early access
  • Can only be opened and operated online
  • Interest paid on anniversary

Paragon Bank secures fifth place with this deal that pays 2.20% from a minimum of £1,000. It allows further additions for another five days if you're not quite sure of your initial investment, but early access still won't be possible. It should be noted that this account can only be opened and operated online, but for those happy with internet banking, it could be a great option.


AER
Details

Al Rayan Bank

Al Rayan Bank

Fixed Term Deposit

2.17% AER
(expected profit rate)

  • £1,000 minimum deposit
  • 36-month bond
  • Further additions, withdrawals and early access not permitted
  • Interest paid quarterly
  • Can be opened and operated online, by post, by phone or and branch
  • Sharia'a compliant account

Al Rayan Bank completes the top six with this account that pays an expected profit rate of 2.17%. It requires a minimum investment of £1,000, after which further additions won't be permitted and nor will early access, so savers must be sure they're happy with their overall investment and the length of the term.

Information & Rates correct as at: 01/11/2017

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.

Close