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Product focus: Five year fixed rate bonds

Product focus: Five year fixed rate bonds

Category: Savings

Updated: 25/05/2011
First Published: 25/05/2011

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 It is now over 6 months old so the content may be out of date.

Savers who are looking for a competitive return on their money may be suited to a fixed rate bond. Long term bonds can offer some of the best rates in the market, however investors must be willing to lock their funds away for the duration of the term as early access will often result in a penalty. Here is a summary of the current best five year fixed rate bonds.

Birmingham Midshires - Internet 5 Year Fixed Rate Bond

This account pays 5.05% on its anniversary. A monthly interest option is available at 4.94%. Savers can invest between £1 and £10 million and further additions can be made whilst the issue remains open. Early access is allowed, subject to penalty depending the outstanding term as follows: Up to five years, 365 days; three to four years, 320 days; two to three years, 270 days; one to two years, 180 days; one year or less, 90 days. The account is available to savers aged 18 and over and can be operated online only.

krbs – 5 Year Fixed Rate Bond Issue 2

This deal pays an annual rate of 5.00%. Investments range between £500 and £1 million, although those choosing the monthly interest option at 4.89% must invest a minimum of £10,000. Further additions and early access are not permitted. The account can be operated in branch and by post by savers of all ages

AA – Internet 5 Year Fixed Rate

This online only account pays a rate of 5.00% on its anniversary. A monthly interest option is also available at 4.89%. Savers can invest between £1 and £5 million and further additions can be made whilst the issue remains open. Early access is permitted, 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 and four years, 320 days; four to five years, 365 days.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
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