Product focus: Five year fixed rate bonds - Savings - News - Moneyfacts


Product focus: Five year fixed rate bonds

Product focus: Five year fixed rate bonds

Category: Savings

Updated: 15/10/2010
First Published: 15/10/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!