Medium-term fixed-rate bonds are a popular choice amongst savers, as they tend to pay higher rates than their short-term counterparts without committment of a four or five-year investment product.
Many cautious savers are favouring two and three-year bonds, as they allow money to be locked away whilst minimising the risk of being left on lower rates in the event of interest rates eventually rising.
ICICI Bank UK HiSAVE Fixed Rate Account
Penny says: "Sitting at the top of the medium-term market is this highly competitive deal available to savers with at least £1,000 to invest.
"Access to funds during the term is prohibited, so savers must be willing to tie up their cash for the duration of the three year term."
SAGA 3 Year Fixed Rate Savings
Penny says: "Paying a variety of rates, depending on the deposit amount, this account should appeal to savers with larger investments.
"Although this account can only be operated by post, savers can apply by telephone or online."
Bank of Cyprus UK Bond
Penny says: "Sitting in third place is this three-year account from the Bank of Cyprus UK, available to savers of all ages.
"Savers must be committed to locking their money away for the three year term as early access to funds is prohibited."
State Bank of India Hi Return Fixed Deposit
Penny says: "Falling just shy of the market's top three is this attractive deal paying competitive returns on its anniversary and a monthly basis.
"Withdrawal of funds during the term is not permitted as with the majority of fixed rate bonds."
Shawbrook Bank 3 Year Fixed Rate Bond Issue 10
Penny says: "This deal from Shawbrook Bank squeezes into the top five of the market with a competitive annual rate of return.
"Savers can apply for this account by post or via the internet if they wish."
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3 year fixed rate accounts
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 Any products featured may be withdrawn by their provider or changed at any time.
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