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

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.
 
Close