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Product focus: Long-term savings accounts

Product focus: Long-term savings accounts

Category: Savings

Updated: 18/11/2011
First Published: 18/11/2011

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 It is now over 6 months old so the content may be out of date.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 are a popular choice among savers as they tend to pay higher savings rates than their short-term counterparts.

However, bonds with terms of four or five years carry the risk of leaving savers on an uncompetitive rate once base rate increases.

Here is a selection of the current best five year fixed rate bonds.

BM Savings - 5 Year Fixed Rate

  • This account pays 4.65% on its anniversary.
  • A monthly interest option is available at 4.55%.
  • Savers can invest between £1 and £1 million and further additions can be made whilst the issue is open.
  • Early access is allowed, subject to penalty depending on the outstanding term, as follows:
    • Up to five years, 365 days;
    • up to four years, 320 days;
    • up to three years, 270 days;
    • up to two years, 180 days
    • and for one year or less, 90 days.
  • The account can be operated by investors aged 16 and over by post only.

AA - 5 Year Fixed Rate Savings

  • AA's five year bond pays 4.60% on its anniversary.
  • Savers can invest between £1 and £5 million and further additions can be made whilst the issue remains open.
  • Funds can be accessed early, subject to penalty depending on the remaining term, as follows:
    • For 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 remaining, 365 days.
  • The account is available to savers aged 16 and over and can be operated by post only.

Halifax - Fixed Online Saver

  • This account pays 4.40% on its anniversary.
  • A monthly interest option is available at 4.31%.
  • Savers can invest between £500 and £5 million and further additions are not permitted.
  • Early access to funds is allowed upon account closure and is subject to 365 days' loss of interest.
  • The account is available to savers aged 16 and over and can be operated, as the name suggests, online only.

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

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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