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

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Product focus: fixed rate bonds

Product focus: fixed rate bonds

Category: Savings

Updated: 06/01/2010
First Published: 06/01/2010

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 It is now over 6 months old so the content may be out of date.

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 Any products featured may be withdrawn by their provider or changed at any time.

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