Research conducted by Moneyfacts has suggested that 30 per cent of consumers are choosing easy access accounts. Despite this, there still remains a large portion of savers opting for medium term fixed rate bonds.
These deals are designed to lock funds away until maturity, by which time savers will hope to see an improvement in interest rates. Here is a selection of the current top three year fixed rate bonds.
Aldermore – Three Year Fixed Rate Account
This deal from Aldermore, previously know as Ruffler Bank, pays a rate of 5.05 per cent on maturity. A lower rate of 4.94 per cent is paid on maturity for savers who choose the monthly interest option. Savers must be aged 18 or over and can invest between £1,000 and £1 million. The account can be operated by post, by telephone or online. Early access or further additions are not permitted.
Barnsley Building Society – Online Bond
This account pays 5.00 per cent on 30th September 2012, with a monthly interest option of 4.89 per cent. The account can only be operated online and by persons aged 16 or over. Early access is not permitted, although further additions are allowed whilst the issue remains open. On maturity the bond will transfer to an Online Saver account, which at present pays a rate of 2.50 per cent, or 2.47 per cent if the saver is opting for monthly interest.
ICICI Bank UK – HiSAVE Fixed Rate Account
This deal pays a rate of 4.60 per cent on maturity after a three year term. Savers must open or have an existing HiSAVE savings account and be aged 18 or over. The minimum deposit for this account is £1,000 and there is no maximum investment amount. A monthly interest option is available at a lower rate of 4.51 per cent. This account can only be operated via the internet.
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 Any products featured may be withdrawn by their provider or changed at any time.
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