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Product focus: Fixed rate bonds

Product focus: Fixed rate bonds

Category: Savings

Updated: 17/03/2010
First Published: 17/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Fixed rate bonds often require a large initial deposit, however, there are a range of accounts available for savers with limited funds.

Here are the current top three bonds fixed for two years that require a minimum deposit of just £1.

Coventry Building Society – CallSave 2 Year Fixed Bond (33) 30.4.12

This account, recently launched by Coventry Building Society, pays an annual rate of 4.00%. Savers can invest between £1 and £250,000 and further additions are allowed while the issue remains open or for seven days after the initial deposit, whichever is longest. No early access is allowed. Funds are automatically reinvested on maturity, unless stated otherwise by the accountholder. The account can be operated by savers of all ages in branch, by telephone or online.

Bank of Cyprus UK – Bank of Cyprus UK Bond 84

This account pays a rate of 3.95% on its anniversary. Between £1 and £10 million can be invested, although further additions are not permitted. Early access is not allowed. Interest is paid in gross on balances over £50,000. The account is available to savers of all ages and can be operated in branch, by post, telephone or online.

SAGA – 2 Year Fixed Rate Savings

SAGA's two year bond pays a rate of 3.90% on its anniversary. Investments range between £1 and £10 million and further additions are allowed while the issue is open. Early access is allowed, subject to 180 days loss of interest for up to two years outstanding or 90 days loss for one year. The account can be operated by savers aged 50 and over by post, telephone or online.

Find the best savings account for you - Compare best selling 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 Any products featured may be withdrawn by their provider or changed at any time.

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