Product Focus: Long term bonds - Savings - News - Moneyfacts


Product Focus: Long term bonds

Product Focus: Long term bonds

Category: Savings

Updated: 29/09/2009
First Published: 29/09/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

It may be difficult at present to predict when the Bank of England base rate will begin to rise again. However, some savers are continuing to lock cash away in long term fixed rate bonds, as they tend to offer the most appealing rates.

The main risk with long term bonds is that should base rate increase, savers could find themselves locked into an uncompetitive rate. Here is a selection of the best five year fixed rate bonds:

Yorkshire Building Society – 5 Year Fixed Rate Bond

This deal pays an annual rate of 5.30 per cent, although a monthly interest option is also available at 5.18 per cent. Savers can invest between £100 and £2m. Early access is not allowed although account holders may make further additions whilst the issue remains open. On maturity the account transfers to a 2 year fixed rate Rollover Bond, which allows access to funds in the first month. The account is available to savers aged 16 and over and can operated in branch and by telephone.

Principality Building Society – Fixed Rate Bond 150

Principality Building Society's five year fixed bond pays a rate of 5.30 per cent, while the monthly interest option pays a lower rate of 5.18 per cent. Savers can invest between £500 and £1m. Early access on closure of account is subject to 360 days loss of interest. The account can be operated in branch with a passbook or by post. There is no minimum account holder age.

Barclays Bank – 5 Year Fixed Rate Savings Bond Issue 46

This account pays a rate of 5.25 per cent, although a monthly interest option is available at 5.13 per cent. Investments range between £500 and £1m. Early access and further additions are not permitted. The account can be operated in branch by account holders aged 18 or over, although existing Barclays Bank current account holders can apply for this account online or by telephone.

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 Any products featured may be withdrawn by their provider or changed at any time.

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