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Product focus: Five year fixed rate bonds

Product focus: Five year fixed rate bonds

Category: Savings

Updated: 16/04/2010
First Published: 16/04/2010

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 It is now over 6 months old so the content may be out of date.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 returns for long term fixed rate bonds are often higher than those which run for two to three years. The minimum deposits required for long term bonds also tend to be rather high, which may put off some savers. Here are the current top five year bonds which require a minimum investment of £100 or less.

Barnsley Building Society – Online Bond

The Online Bond account pays an annual rate of 4.70pc. Investments range between £100 and £2m and further additions can be made whilst the issue remains open. No interest is paid until 31st May 2011 and early access is not allowed. The account transfers to an Online Saver on maturity. The account is available to savers aged 16 and over and can be operated online only.

AA – 5 Year Fixed Rate Savings

This account 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 while the issue is open. Early access is allowed subject to penalties depending on the remaining 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, 320 days; and four to five years, 365 days. The account can be operated by post for savers aged 18 and over, although applications can be made by telephone or online.

SAGA – 5 Year Fixed Rate Savings

This account, launched recently by SAGA, pays a rate of 4.50pc on its anniversary. Savers can invest between £1 and £10m and further additions can be made whilst the issue is open. Early access is allowed subject to penalties depending on the remaining term, as follows; One year or less, 90 days; up to two years, 180 days; up to three years, 270 days; up to four years, 320 days; and up to five years, 365 days. The account is available to savers aged 50 and over and can be operated by post, telephone and online.

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 Any products featured may be withdrawn by their provider or changed at any time.

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