Product focus: Long term fixed rate bonds - Savings - News - Moneyfacts

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Product focus: Long term fixed rate bonds

Product focus: Long term fixed rate bonds

Category: Savings

Updated: 29/01/2010
First Published: 29/01/2010

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 It is now over 6 months old so the content may be out of date.

Long term fixed rate bonds remain a popular choice for savers wishing to lock away their funds, as they tend to pay a higher rate of return than their short term counterparts.

However, with interest rates predicted to rise, savers could find themselves stuck on a lower fixed rate when the term ends.

Here are the current five year fixed rate bonds .

Aldermore – 5 Year Fixed Rate Account
This reasonably new account from Aldermore pays a rate of 5.15% on its anniversary. A monthly interest option is also available at 5.03%. Savers can invest between £1,000 and £1 million. Earlier access and further additions are not allowed. The account can be operated by savers aged 18 and over by post, telephone and online.

AA – Telephone 5 Year Fixed Rate Bond
This account, which can only be operated by telephone, pays a rate of 5.10%. A monthly interest option is available at 4.98%. Savers can invest between £500 and £5 million, and further additions are allowed while the issue is open. Early access is allowed, subject to the following loss of interest: For a remaining term of 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 for four to five years, 365 days. Savers must be aged 18 and over.

Skipton Building Society – Fixed Rate Bond 31.1.15
This account pays a rate of 5.01%. A monthly interest option is also available at 4.90%. Savers can invest between £500 and £1 million. Early access is not allowed, although further additions can be made while the issue is open. The account can be operated in branch, by post or online by savers aged 18 and over.

Find the best savings accounts for you - Compare long term fixed rate bonds


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 Any products featured may be withdrawn by their provider or changed at any time.

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