Long term fixed rate bonds may not be the first choice of many savers at the moment, due to the prospect of remaining on a fixed rate when interest rates start to rise. These deals do, however, tend to pay a higher rate of return when compared to short term fixed rate bonds. Here is a selection of some of the best five year fixed rate bonds available at the moment.
Northern Rock – Fixed Rate Bond Issue 407
Northern Rock's five year fixed rate bond pays an annual rate of 4.50%, while a monthly interest option is also available at 4.20%. Savers can invest between £1 and £2m and further additions are allowed whilst the issue remains open. Early access to invested funds is not allowed. The account is available to savers of all ages and can be operated by post only.
Principality Building Society – Fixed Rate Bond 176
This fixed rate bond pays 4.25% on its anniversary. A monthly interest option at 4.17% is also available. Investments can range between £500 and £1m and further additions are allowed whilst the issue remains open. Early access to funds is allowed, although this is subject to 360 days loss of interest. The account is available to savers of all ages and can be operated in branch or by post.
Nationwide Building Society – Five Year Fixed Rate Bond
This fixed rate bond pays an annual rate of 4.10%, with a monthly interest option also being available at 4.00%. Savers can invest between £1 and £2m, but further additions are not allowed. Early access is permitted on closure of the account, subject to 365 days loss of interest. The account is open to savers aged 7 and over and can be operated in branch only.
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