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Product focus: Five year fixed rate accounts

Product focus: Five year fixed rate accounts

Category: Savings

Updated: 15/01/2010
First Published: 15/01/2010

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 It is now over 6 months old so the content may be out of date.

For savers who are willing to lock funds away for anything up to five years, long term fixed rate bonds may be the best option. These accounts pay a guaranteed income which tends to be more than their short term counterparts. However, interest rates could increase during the term, resulting in uncompetitive rate at the end of the fixed period. Here are the current top three five year fixed rate accounts.

Aldermore – 5 Year Fixed Rate Account

This account pays a rate of 5.15pc. A monthly interest option is also available at 5.03pc. Savers can invest between £1,000 and £1m. Early access and further additions are not allowed. The account can be operated by post, telephone or online by savers aged 18 and over.

SAGA – 5 Year Fixed Rate Savings

SAGA's five year fixed rate bond pays a rate of 5.10pc. A monthly interest option is also available at 4.98pc. Investments range between £1 and £10m. Earlier access is allowed subject to penalty, depending on the length of the remaining outstanding term as follows. For up to five years, 365 days' loss of interest; up to four years, 320 days; up to three years, 270 days; up to two years, 180 days and for one year outstanding, 90 days. Further additions are allowed while the issue is open. The account is available to savers aged 50 and over and can be operated by post or telephone.

Skipton Building Society – Fixed Rate Bond 31.1.15

This account pays a rate of 5.01pc. Interest is paid on 31st January 2011. A monthly interest option is also available at 4.90pc. Savers can invest between £500 and £1m. Earlier access is not allowed although further additions are permitted. The account can be operated in branch, by post or online by savers aged 18 and over.

Compare long term fixed rate bonds



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 Any products featured may be withdrawn by their provider or changed at any time.

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