Savers who are willing to lock away a sizeable amount of money for a long period of time, may be best suited to a long term fixed rate bond.
The main attraction with these accounts is that savers know the rate of return that they will receive at the end of the term, although they may be left disappointed if interest rates rise during this time.
Here are the current top three four year fixed rate bonds.
Birmingham Midshires – 4 Year Fixed Rate Bond
Birmingham Midshires' four year bond pays a rate of 5.00%. A monthly interest option is also available at 4.89%. Savers can invest between £1 and £10 million. Further additions are allowed whilst the issue is open. Funds can be accessed early, although this is subject to penalties depending on the length of the remaining term, as follows: For up to four years, 320 days'; up to 3 years, 270 days'; up to two years, 180 days' and for one year or less, 90 days' loss of interest. The account can be operated by savers aged 18 and over by post only, although savers can apply for the account by telephone or online.
Halifax – Web Saver
This recently launched online only account pays a rate of 4.75% on its anniversary. Investments range between £500 and £9 million. Further additions and early access is not allowed. Savers must open or have an existing variable rate Web Saver account. There are no age restrictions for this account.
ICICI Bank UK – HiSave Fixed Rate Account
Another online account, this product pays a rate of 4.50% on its anniversary. A monthly interest option is also available at 4.41%. Savers must invest a minimum deposit of £1,000 although there is no maximum amount. Early access and further additions are not allowed.
Compare fixed rate bonds
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 Any products featured may be withdrawn by their provider or changed at any time.
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