Product Focus: Is it time for a long term bond? - Savings - News - Moneyfacts

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Product Focus: Is it time for a long term bond?

Product Focus: Is it time for a long term bond?

Category: Savings

Updated: 08/10/2010
First Published: 08/10/2010

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 It is now over 6 months old so the content may be out of date.

Generally speaking, fixed rate bonds tend to pay better rates than other types of accounts.

Long term bonds of three years or more pay some of the best savings rates, although savers must be willing to lock their money away for the length of the term.

Here is a selection of the current best five year fixed rate bonds.

Aldermore – 5 Year Fixed Rate Account

This account pays 4.50% on its anniversary. A lower rate of 4.41% is paid to savers who choose the monthly interest option. Investments range between £1,000 and £1 million. Further additions and early access are not allowed. The account can be operated by post, telephone or online by savers age 18 and over.

Progressive Building Society – Limited Issue Five Year Fixed Term Bond Issue 18

This five year bond pays an annual rate of 4.30%. Savers can invest between £500 and £1 million, although those who choose the monthly interest option must make a minimum deposit of £5,000. Further additions are allowed whilst the issue remains open. Early access is not permitted. The account can be operated by savers of all ages in branch or by post.

Northern Rock – Fixed Rate Bond Issue 414

Northern Rock's five year bond pays an annual rate of 4.15%. A monthly interest option is available at 3.85%. Savers can invest between £1 and £2 million and further additions can be made whilst the issue remains open. Early access is not allowed. The account can be operated by savers of all ages by post only.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.

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