Although some experts still believe bank base rate will not change for a while yet, a number of cautious savers are choosing short term bonds to secure a good return.
The following products are all two year fixed bonds and can be operated online only:
AA – Internet 2 Year Fixed Rate Bond
This account pays a rate of 4.35 per cent on anniversary. A monthly interest option is available at a lower rate of 4.27 per cent. Savers can invest between £500 and £5 million. Early access is allowed, although it is subject to 90 days' loss of interest. Further additions are allowed while the issue is open. The account can be operated online by BACS payment and is available to savers aged 18 and over.
Birmingham Midshires – Internet 2 Year Fixed Rate Bond
This product pays a rate of 4.25 per cent on anniversary. A monthly interest option is available to savers at a lower rate of 4.17 per cent. Investments range from £1 to £10 million. Further additions can be made while the issue is open. Savers can access funds earlier, although they will incur 90 days' loss of interest. The account can be operated by savers aged 18 and over.
ICICI Bank UK – HiSAVE Fixed Rate Account
This two year fixed bonds pays a rate of 4.25 per cent on anniversary. A monthly interest option is available at a lower rate of 4.17 per cent. Minimum investment is £1,000, although there is no maximum amount. Early access and further additions are not allowed. Savers must open or have an existing HiSAVE savings account and be aged 18 and over.
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 Any products featured may be withdrawn by their provider or changed at any time.
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