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Product focus: Fixed rate accounts

Product focus: Fixed rate accounts

Category: Savings

Updated: 08/09/2010
First Published: 24/06/2010

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 It is now over 6 months old so the content may be out of date.

Many analysts are predicting that when the Bank of England starts to raise bank base rate, it will do so in small gradual steps.

If this is the case then rates could remain relatively low for some time and customers may be better of with a longer term fixed deal over a variable rate deal.

Some of the best deals on the market include:

ICICI Bank UK – HiSAVE Fixed Rate

ICICI Bank UK is offering the market leading rate for fixed rate bonds. At 5.00%, the rate is 0.44% higher than its nearest competitor. The bond has a monthly interest option for those after a regular income. Savers can invest upwards of £1,000 into the bond, but once opened further additions and earlier access is not permitted. Although ICICI has an Indian parent company the bank is fully registered in the UK and deposits are covered under the UK depositor protection scheme.

Aldermore – 4 Year Fixed Rate Account

Savers after a four year commitment might like to consider the 4 Year Fixed Rate Account from Aldermore, which pays 4.25pc. The bond has a monthly interest option for savers after a regular income. Savers can invest between £1,000 and £1m into the bond, which is operated by post, internet or telephone. Once opened earlier access and further additions are not permitted.

Post Office – Growth Bond

If savers are after a medium term commitment then the Growth Bond from the Post Office is paying 4.10%. Savers can invest between £500 and £1 million into the bond, but further additions are not permitted after the initial investment. The bond can be operate by post, telephone or online, but access to funds is not permitted during the three year term.

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 Any products featured may be withdrawn by their provider or changed at any time.

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