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Product focus: Long term fixed rate bonds

Product focus: Long term fixed rate bonds

Category: Savings

Updated: 08/01/2010
First Published: 08/01/2010

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 It is now over 6 months old so the content may be out of date.
The main attraction of a long term fixed rate bond is that savers know what rate of return they will receive until the end of the term, although they may be left disappointed if interest increase during the interim.

Savers must be willing to lock away a sizeable amount of money for a long period of time, so they must also consider including an instant access account within their portfolio.

Here are the current top three four year fixed rate bonds.

Halifax – Web Saver

This product is only available online and pays a rate of 4.75% on its anniversary. Investments range between £500 and £9 million. Further additions and early access is not allowed. Savers must open or have an existing variable rate Web Saver account. There are no age restrictions for this account.

Aldermore – 4 Year Fixed Rate Account

This product is available online, through a branch or over the telephone and pays a rate of 4.75% on its anniversary. Investments range between £1,000 and £1 million. Further additions and early access is not allowed and savers must be aged 18 and over.

ICICI Bank UK – HiSave Fixed Rate Account

Another online account, this product pays a rate of 4.50% on its anniversary. A monthly interest option is also available at 4.41%. Savers must invest a minimum deposit of £1,000 although there is no maximum amount. Early access and further additions are not allowed. Savers must open or have an existing HiSave savings account and be 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 Any products featured may be withdrawn by their provider or changed at any time.

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