There has been a lot of speculation as to when interest rates will begin to rise.
With many experts predicting a change by the end of 2010, some savers may feel reluctant to open an account such as a long term bond where the rate is fixed for the term.
Long term fixed rate bonds do, however, tend to pay a better rate of return than their short term counterparts.
Here is a selection of the current best five year fixed rate bonds.
Aldermore – 5 Year Fixed Rate Account
Aldermore's five year fixed rate bond pays 4.56% on its anniversary. A monthly interest option is available at 4.47%. Savers can invest between £1,000 and £1 million. Early access and further additions are not allowed. The account is available to savers aged 18 and over and can be operated by post, telephone and online.
AA – 5 Year Fixed Rate Savings
This account from the AA pays 4.55% on its anniversary. A monthly interest option is available at 4.46%. Savers can invest between £1 and £5 million and further additions can be made 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, 320 days and four to five years, 365 days. The account can be operated by savers aged 18 and over by post only.
Progressive Building Society – Limited Issue Five Year Fixed Term Bond Issue 16
This account pays an annual rate of 4.30%. Investments range between £500 and £1 million and further additions can be made whilst the issue remains open. Savers also have the choice of a monthly interest option, although this requires a minimum deposit of £5,000. The account is available savers of all ages and can be operated in branch or by post.
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 Any products featured may be withdrawn by their provider or changed at any time.
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