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Product focus: Five year bonds

Product focus: Five year bonds

Category: Savings

Updated: 04/11/2011
First Published: 04/11/2011

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 It is now over 6 months old so the content may be out of date.

In the savings market some of the most competitive rates are available through fixed rate bonds.

To achieve the best rate of interest savers must lock their money away for the duration of the term.

Here is a selection of some of the best five year rate bonds available at present:

BM Savings - 5 Year Fixed Rate Bond

  • This deal pays a rate of 4.65% on its anniversary. Investments range between £1 and £10 million and further additions can be made whilst the issue remains open.
  • Early access is allowed, subject to penalty depending on the outstanding term, as follows:
    • Up to five years, 365 days;
    • three to four years, 320 days;
    • two to three years, 270 days;
    • one to two years, 180 days and
    • for one year or less, 90 days.
  • The account can be operated by post by savers aged 16 and over.
  • Applications can be online, although savers must be aged 18 and over.

AA – 5 Year Fixed Rate Savings

  • This bond pays an annual rate of 4.60% to savers with deposits between £1 and £5 million.
  • Further additions can be made whilst the issue remains open.
  • Early access is allowed, subject to penalty depending on the remaining term, as follows:
    • Up to five years, 365 days;
    • three to four years, 320 days;
    • two to three years, 270 days;
    • one to two years, 180 days and
    • for one year or less, 90 days.
  • The account can be operated by post by savers aged 16 and over.
  • Applications can be online, although savers must be aged 18 and over.

SAGA - 5 Year Fixed Rate Savings

  • This account pays 4.50% on its anniversary.
  • Savers can invest between £1 and £10 million and further additions can be made whilst the issue remains open.
  • Early access is allowed, subject to penalty depending on the remaining term, as follows:
    • Up to five years, 365 days;
    • three to four years, 320 days;
    • two to three years, 270 days;
    • one to two years, 180 days and
    • for one year or less, 90 days.
  • The account is available to savers aged 50 and over and can be operated by post.
  • Applications can be online or by telephone.

Find the best savings accounts for you - Compare long term 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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