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Product focus: Long term bonds

Product focus: Long term bonds

Category: Savings

Updated: 30/04/2010
First Published: 30/04/2010

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 It is now over 6 months old so the content may be out of date.

Savings customers who would like a guaranteed return on their savings and are committed to locking funds away for at least four years, may be suited to long term bonds.

Although these accounts tend to pay a high rate of return, it is mainly due to the premise of savers not accessing funds during the term.

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

Principality Building Society – Fixed Rate Bond 167

This reasonably new account pays 4.20% on its anniversary. A monthly interest option is also available at 4.12%. Savers can invest between £500 and £1 million and further additions can be made whilst the issue is open. Early access is allowed on account closure, subject to 300 days loss of interest. The account is available to savers of all ages and can be operated in branch and by post.

Aldermore – 4 Year Fixed Rate Account

Aldermore's four year bond pays 4.16% on its anniversary. A monthly interest option is available at 4.08%. Savers can invest between £1,000 and £1 million. Further additions and early access are not allowed. The account can be operated by post, telephone and online by savers aged 18 and over.

Birmingham Midshires – 4 Year Fixed Rate

This account pays 4.15% on its anniversary. Monthly interest is available at 4.07%. Investments range between £1 and £10 million and further additions can be made whilst the issue is open. Must be new money to the institution. Early access is allowed subject to penalty, depending on the length of the outstanding term, as follows; Up to four years, 320 days; up to three years, 270 days; up to two years, 180 days; one year or less, 90 days. The account can be operated by savers of all ages by post only.

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 Any products featured may be withdrawn by their provider or changed at any time.

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