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 Any products featured may be withdrawn by their provider or changed at any time.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