Product focus: Fixed rate bonds - Savings - News - Moneyfacts

News

Product focus: Fixed rate bonds

Product focus: Fixed rate bonds

Category: Savings

Updated: 26/01/2010
First Published: 26/10/2009

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 It is now over 6 months old so the content may be out of date.

Since March the average rate payable on a fixed rate bond has steadily increased as providers battled it out to a attract savers' money. However, in the last few weeks the demand for this source of capital appears to have eased and rates have slowly started to decrease from the peak seen at the start of the month. Despite this, competitive rates remain on offer.

Post Office – Growth Bond Issue 10

The Post Office is offering one of the highest rates on the market for a one year bond paying 3.70pc on its Growth Bond. Savers can invest between £500 and £1m into the bond, but further additions are not permitted once the bond has been opened. Access to funds during the one year term is available on closure only and will be subject to a breakage charge.

AA – Internet 2 Year Fixed Rate Bond

The highest rate on the market for customers committing funds for two years is from the AA, which is paying 4.35pc on its Internet 2 Year Fixed Rate Bond. Savers looking for a regular income from their money can opt for interest to be paid monthly. Between £500 and £5m can be invested in the bond, with further additions allowed whilst the bond remains open. Access to funds is available during the term, but will be subject to 90 days' loss of interest.

Bank of Cyprus UK – Bank of Cyprus UK Bond 58

Bank of Cyprus UK is paying a rate of 4.07pc on its bond, which has a 15 month term. Savers can invest from as little as £1, with no maximum on the amount that can be invested. The account is operated in branch, by post, telephone or online. Once opened, further additions and earlier access are not permissible during the term.

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!
 
Close