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Product focus: Long term fixed rate bonds

Product focus: Long term fixed rate bonds

Category: Savings

Updated: 28/05/2010
First Published: 28/05/2010

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 It is now over 6 months old so the content may be out of date.

Although many savers seem to be favouring short term bonds at the moment, there are still some who are willing to invest their cash over a longer period of time. Those looking long realise that long term fixed rate bonds tend to pay a higher rate of return compared to one or two year deals. This may seem like a no-brainer, but it's worth bearing in mind that if base rate increases in the near future, savers locked into a long term fixed rate bond will have to sit tight, while rates probably start to increase elsewhere.

Here are the current best five year fixed rate bonds.

Coventry Building Society – 5 Year Fixed Bond (4) 31.8.15

This account pays a rate of 5.00pc on 31 August 2015, with a monthly interest option is available at 4.89pc. Savers can invest between £1 and £250,000, with further additions allowed whilst the issue is open. Early access is allowed, subject to 180 days loss of interest. Funds are automatically re-invested on maturity unless the account holder states otherwise. The account is open to savers of all ages and can be operated in branch, by telephone or online.

Aldermore – 5 Year Fixed Rate Account

Aldermore's 5 Year Fixed Rate Account pays 4.70pc on anniversary. A monthly interest option is available at 4.60pc. Investments can range between £1,000 and £1m, although further additions and early access is not allowed. The account can be operated by post, telephone or online by savers aged 18 and over.

AA – 5 Year Fixed Rate Savings

This account pays 4.55pc on its anniversary, with a monthly interest option also available at 4.46pc. Savers can invest between £1 and £5m and further additions can be made whilst the issue remains open. Early access is allowed, although a penalty will be charged, depending on the term remaining: 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 remaining, 365 days. Available to savers aged 18 and over, the account must be operated by post, although applications can be made by telephone or online.

To see more of the most popular savings accounts, visit our best selling savings account chart.

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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