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Product focus: Long-term savings accounts

Product focus: Long-term savings accounts

Category: Savings

Updated: 09/02/2012
First Published: 09/02/2012

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 It is now over 6 months old so the content may be out of date.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 tend to pay some of the more competitive rates in the market.

Savers must be committed to lock their funds away for the duration of the term, or risk incurring penalties such as loss of interest or account closure.

Here is a selection of some of the best five year fixed rate bonds available at present.


BM Savings - 5 Year Fixed Rate

  • This account pays a rate of 4.65% on its anniversary.
  • Savers can invest between £1 and £10 million and further additions can be made whilst the issue remains open.
  • Early access is allowed, although this is 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 loss of interest.
  • The account is available to savers aged 16 and over and can be operated by post.


Vanquis Bank - Vanquis Bank High Yield

  • This online only five year bond pays 4.65% on its anniversary.
  • A monthly interest option is available at 4.55%.
  • Savers can invest between £1,000 and £250,000.
  • Further additions and early access are not permitted.
  • The account can be operated by savers aged 18 and over.


AA - 5 Year Fixed Rate Savings

  • This account pays a rate of 4.60% on its anniversary.
  • Investments range between £1 and £5 million and further additions can be made whilst the issue remains open.
  • Early access is allowed, although this is subject to penalty depending on 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 remaining, 365 days' loss of interest.
  • The account can be operated by savers aged 16 and over by post 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 Any products featured may be withdrawn by their provider or changed at any time.

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