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 Any products featured may be withdrawn by their provider or changed at any time.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