Product focus: Bonds with £1 minimum investments

Category: Savings
Date: 7/21/2010

There has been plenty of speculation as to when interest rates will increase, with many experts predicting a rise towards the end this year.

Cautious savers who want the reassurance of a guaranteed return may be best suited a short term fixed rate bond.

Here is a selection of the current best one year bonds which require a minimum investment of just £1.

Northern Rock – Fixed Rate Bond Issue 398

This account pays an annual rate of 3.00%. A monthly interest option is available at 2.70%. Savers can invest between £1 and £2 million and further additions can be made whilst the issue is open. Early access is not allowed. The account is available to savers of all ages and can be operated by post only.

Santander – 1 Year Fixed Rate Bond

The rates for this bond are determined by the investment amounts. For deposits between £1 and £9,999 a rate of 2.60% is paid. Higher investments ranging from £10,000 up to £2m will receive a return of 2.75%. A monthly interest option is available, also tiered paying 2.57% and 2.72% respectively. Further additions and early access are not allowed. The account can be operated in branch and by telephone by savers of all ages.

Nationwide Building Society – 1 Year Fixed Rate Bond

This account pays an annual rate of 2.50%. A monthly interest option is available at 2.45%. Savers can invest between £1 and £2 million. No further additions are allowed, although early access is permitted subject to 90 days loss of interest. The account is available to savers of all ages and can be operated in branch only.

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