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Product focus: Fixed rate bonds

Product focus: Fixed rate bonds

Category: Savings

Updated: 12/02/2010
First Published: 12/02/2010

MONEYFACTS ARCHIVE
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Fixed rate bond accounts allow savers to lock cash away for a set period in order to receive a guaranteed return at the end of the term. Sometimes, however, things do not go to plan and some savers may need to access funds early and at short notice. Selected fixed rate bonds allow early access, although subject to penalty. The following accounts allow early access and are fixed for five years.

AA – Telephone 5 Year Fixed Rate Bond



This account pays a rate of 5.10pc on its anniversary. A monthly interest option is available at 4.98pc. Savers can invest between £500 and £5m. Further additions are allowed while the issue is open. Savers can access funds early, subject to the following loss of interest: with a term remaining of one year or less, 90 days; one to two years, 180 days; two to three years, 270 days; three to four years, 320 days; four to five years, 365 days. The account can be operated by telephone by savers aged 18 and over.

Principality Building Society – Fixed Rate Bond 161



This account pays a rate of 4.80pc on its anniversary. A monthly interest option is available at 4.70pc. Savers can invest between £500 and £1m. Further additions are allowed while the issue is open. Early access is allowed on account closure only and is subject to 360 days' loss of interest. The account is available to savers of all ages and can be operated in branch and by post.

Nationwide Building Society – 5 Year Fixed Rate Bond



The rate for this account is dependent on the deposit amounts. For investments between £1 and £9,999, a rate of 4.75pc is paid. Deposits of between £10,000 and £24,999 will receive 4.80pc, between £25,000 and £49,999 4.90pc and for £50,000 and £2m 5.00pc is paid. Early access is allowed on account closure only and is subject to 365 days' loss of interest. Further additions are allowed. The account can be operated by savers aged seven and over in branch only.

Find the best savings accounts for you - Compare long term 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 Any products featured may be withdrawn by their provider or changed at any time.

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