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Product focus: Five year fixed rate bonds

Product focus: Five year fixed rate bonds

Category: Savings

Updated: 11/06/2010
First Published: 11/06/2010

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 It is now over 6 months old so the content may be out of date.

The old adage 'saving for a rainy day' is virtually a thing of the past, thanks to inflation and the ever increasing cost of living. Many people are focusing on paying off bills and existing debts, rather than putting money aside for the future. However, for savers who are able to put away a sizeable amount and who want a guaranteed rate of return, fixed rate bonds may be the best option. Here are the current top five year fixed rate bonds.

ICICI Bank UK – HiSAVE Fixed Rate Account

This online only five year fixed rate bond pays 5.00pc on its anniversary. Savers can invest a minimum of £1,000 although there is no maximum deposit limit. A monthly interest option is also available at 4.89pc. Early access and further additions are not allowed. A HiSAVE savings account is automatically opened for administration of maturity proceeds. Savers must be aged 18 and over.

Aldermore – 5 Year Fixed Rate Account

This five year fixed rate bond pays 4.70pc on its anniversary., with a monthly interest option also available at 4.60pc. Savers can invest between £1,000 and £1m, although further additions and early access are not permitted. The account is available to savers aged 18 and over and can be operated by post, telephone or online.

AA – 5 Year Fixed Rate Savings

The AA's five year fixed rate bond pays 4.55pc on its anniversary. A monthly interest option is also available at 4.46pc. Savers can invest between £1 and £5m and further additions are allowed whilst the issue remains open. Early access is allowed, subject to penalty depending on the outstanding term as follows: One year or less, 90 days; one to two years, 180 days; two to three years, 270 days; three to four years and for 320 days; four to five years, 365 days. The account is available to savers aged 18 and over and can only be operated by post. Savers can, however, apply for the account by telephone or online.

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 Any products featured may be withdrawn by their provider or changed at any time.

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