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

News

Product focus: Five year fixed rate bonds

Product focus: Five year fixed rate bonds

Category: Savings

Updated: 10/09/2010
First Published: 10/09/2010

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 It is now over 6 months old so the content may be out of date.

Bank base rate has remained on hold, at a record low of 0.5%, for the eighteenth consecutive month.

Savers trying to plan ahead may be confused as to what their savings options are, with experts predicting an increase in interest rates next year.

Those considering bonds with terms of around four to five years should bear in mind that their rate is fixed for the term and could be less competitive in the long term, when interest rates increase.

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

Aldermore – 5 Year Fixed Rate Account

This account pays 4.75% on its anniversary. A monthly interest option is available at 4.65%. Savers can invest between £1,000 and £1m. Early access and further additions are not permitted. The account can be operated by savers aged 18 and over by post, telephone or online.

Birmingham Midshires – 5 Year Fixed Rate

Birmingham Midshires five year bond pays 4.60% on its anniversary. Savers can also opt for the monthly interest option at 4.51%. Investments range 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 remaining term outstanding as 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 and for one year or less, 90 days. Must be new money to the institution. The account is available to savers of all ages and can be operated by post only.

AA – 5 Year Fixed Rate Savings

This five year bond from the AA pays 4.55% on its anniversary. A monthly interest option is also available at 4.46%. Investments range between £1 and £5m and further additions are allowed whilst the issue remains open. Early access is allowed, although this is subject to penalty, depending on the term remaining as follows: For 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 is available to savers aged 18 and over and can be operated 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.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close