Long term bonds tend to pay some of the best rates in the market.
Savers must be willing to leave their money tied in for the duration of the term, however, as penalties will often apply for accessing funds early.
Here is a selection of the best five year fixed rate bonds.
AA – 5 Year Fixed Rate Savings
This account pays 4.55% on its anniversary. A monthly interest option is available at 4.46%. Investments range between £1 and £5m and further additions can be made whilst the issue remains open. Early access is allowed, subject to penalty depending on the remaining term as follows; For one year or less, 90 days; one to two years, 180 days; two to three years, 270 days; three to four years, 320 days and four to five years, 365 days. The account is available to savers aged 18 and over and can be operated by post only.
Progressive Building Society – Limited Issue Five Year Fixed Term Bond Issue 17
This account pays an annual rate of 4.30%. Investments range between £500 and £1 million and further additions can be made whilst the issue remains open. A monthly interest option is also available paying 4.15%, although this requires a minimum deposit of £5,000. The account is available to savers of all ages and can be operated in branch or by post.
Principality Building Society – Fixed Rate Bond 176
Principality's five year bond pays 4.25% on its anniversary. A monthly interest option is available at 4.17%. Savers can invest between £500 and £1 million and further additions can be made whilst the issue remains open. Early access is allowed on the account's closure, although this is subject to 360 days loss of interest. The account can be operated in branch or by post by savers of all ages.
Find the best savings accounts for you - Compare long term fixed rate 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 Any products featured may be withdrawn by their provider or changed at any time.
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