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Product focus: Long term fixed rate bonds

Product focus: Long term fixed rate bonds

Category: Savings

Updated: 09/07/2010
First Published: 09/07/2010

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 It is now over 6 months old so the content may be out of date.

Fixed rate bonds are often seen as complicated investment products by some savers. They can, however, be a rewarding option for those wishing to lock money away for a set period of time. These products also offer the reassurance of a guaranteed return at the end of the term. Here is a selection of the current best long term fixed rate bonds.

Yorkshire Building Society – Fixed Rate Bond

This new account pays an annual rate of 4.60pc. A monthly interest option is also available at 4.51pc. Savers can invest between £100 and £2m and further additions can be made whilst the issue remains open. Early access is not allowed. On maturity the product will transfer to the 2 Year Fixed Rate Rollover Bond which allows access to funds for the first month. The account can be operated in branch only by savers aged twelve years and over, although it can be opened in trust for children up to age of eleven.

Aldermore – 5 Year Fixed Rate Account

Aldermore's 5 Year Fixed Rate Account pays 4.56pc on its anniversary. A monthly interest option is available at 4.47pc. Investments range between £1,000 and £1m. Early access and further additions are not allowed. The account is available to savers aged 18 and over and can be operated by post, telephone or online.

AA – 5 Year Fixed Rate Savings

This account from the AA pays 4.55pc on its anniversary. The monthly interest option pays a lower rate of 4.46pc. Savers can invest between £1 and £5m and further additions can be made whilst the issue remains open. Early access is allowed, subject to loss of interest determined by the outstanding term, as follows: 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.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
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