With financial experts predicting a freeze in interest rates until at least early 2011, savers who are willing to lock cash away for a set period may be best to choose a short term fixed rate bond.
Here are the current top three one year fixed rate accounts.
FirstSave – Fixed Rate Bond Issue 10
This account pays a rate of 3.65% on maturity. A monthly interest option is also available at 3.59%. Savers can invest between £1,000 and £2 million. Early access and further additions is not allowed. The account can be operated online only by savers aged 18 and over.
Bank of Cyprus UK - Bank of Cyprus UK Bond 66
This one year bond pays a rate of 3.55% on maturity. Savers can invest any amount over £1, although savers choosing the monthly interest option at 3.35% must invest a minimum deposit of £50,000. Early access and further additions are not allowed. Interest is paid in gross on balances over £50,000. The account can be operated in branch, by post, telephone or online by savers of all ages.
Melton Mowbray Building Society – Online Fixed Rate Savings
This account pays a rate of 3.50% and matures on 2 February 2011. Savers can invest between £1,000 and £250,000. No further additions are allowed. Early access is allowed, with a maximum amount of £10,000 a day, subject to 90 days' loss of interest. Transfers must be new money to the institution. The account can be operated by savers aged 16 and over online with a passbook.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.