Product focus: Five year bonds - Savings - News - Moneyfacts

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Product focus: Five year bonds

Product focus: Five year bonds

Category: Savings

Updated: 06/12/2010
First Published: 06/12/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Long term bonds tend to pay some of the best rates in the savings market.

When looking for a long term fixed deal, customers must consider whether they can commit to locking money away for the duration of the term.

They must also be aware that the rate will remain fixed even if interest rates increase during the term.

Here is a selection of the current best five year fixed rate bonds.

SAGA – 5 Year Fixed Rate Internet Savings

This account from SAGA pays 4.50% on its anniversary. A monthly interest option is also available at 4.41%. Savers can invest between £1 and £10m and further additions can be made whilst the issue remains open. Early access is allowed subject to penalty, depending on the length of the outstanding term ads follows: Up to five years, 365 days; up to four years, 320 days; up to three years, 270 days; up to two years, 180 days; one year or less, 90 days. The account is available to savers aged 50 and over and can be operated online only.

AA – 5 Year Fixed Rate Savings

This account pays a rate of 4.50% on its anniversary. Investments range between £1 and £5m and further additions can be made whilst the issue remains open. Early access is allowed subject to penalty, depending on the length of the outstanding term ads follows: One year or less, 90 days; one to two years, 180 days; two to three years, 270 days; three to four years, 320 days four to five years, 365 days. The account can be operated by savers aged 18 and over by post only.

Progressive Building Society – Limited Issue Five Year Fixed Term Bond Issue 20

This five year bond pays an annual rate of 4.30%. Savers can invest between £500 and £1m, although those who choose the monthly interest option at 4.15% must make a minimum deposit of £5,000. Further additions can be made whilst the issue is open. Early access is not permitted. The account is available to savers of all ages and can be operated in branch or by post.

Find the best savings rates for you - Compare savings 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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