Savers looking for a fixed rate savings account may have found themselves in a dilemma recently. Long term fixed rate bonds pay higher savings rates than short term deals, but carry the risk of leaving savers on an uncompetitive rate once base rate increases. Here is a selection of the current best five year fixed rate bonds, for savers who wish to make a minimum investment of £1 or more.
Birmingham Midshires – Five Year Fixed Rate
This five year fixed rate bond pays 4.60% on its anniversary, while a monthly interest option is available at 4.51%. Savers can invest between £1 and £10m and further additions can be made whilst the issue remains open. Early access to your money is allowed, subject to a penalty which depends on the 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. The account is available to savers of all ages and can be operated by post.
Northern Rock – Fixed Rate Bond Issue 414
This five year bond from Northern Rock pays 4.15%. Savers can also choose the monthly interest option at 3.85%. Investments can range between £1 and £2m and further additions can be made whilst the issue remains open. However, early access to funds is not allowed. The account can be operated by savers of all ages by post only.
Nationwide Building Society – Five Year Fixed Rate Bond
The rate for Nationwide's branch based five year bond is determined by the amount deposited, as follows: for investments between £1 and £9,999, 3.75%; £10,000 and £24,999, 3.80%; £25,000 and £49,999, 3.90%; and between £50,000 and £2m, 4.00%. Further additions are not permitted but early access is allowed on closure of the account, subject to 365 days' loss of interest. The account can be operated by savers aged 7 and over, in branch only.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.