Product focus: Medium term fixed rate bonds - Savings - News - Moneyfacts

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Product focus: Medium term fixed rate bonds

Product focus: Medium term fixed rate bonds

Category: Savings

Updated: 29/10/2009
First Published: 29/10/2009

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 It is now over 6 months old so the content may be out of date.
After the recent announcement that the UK has yet to pull out of the recession, many analysts predicted that bank base rate would remain low for longer than previously thought. Many savers may now be more inclined to lock into medium term fixed rate bonds to take advantage of the higher rates offered over shorter term deals.

AA – Internet Two Year Fixed Rate Bond

The AA is offering the highest rate on the market for a two year commitment paying 4.35pc on its Internet Two Year Fixed Rate Bond. Savers can invest between £500 and £5m into the bond, which offers a monthly interest option for those requiring a regular income. Whilst the issue remains open, savers can make further additions. If access to funds is required during the term, a 90 days' loss of interest penalty will be applied.

Halifax – Guaranteed Reserve

Halifax is offering savers committing funds for two years a rate of 4.30pc on its Guaranteed Reserve account. The account is operated in branch, online or by post and savers can invest between £500 and £9m. Access to funds is only available after six months and if a withdrawal is made the account will be closed and a penalty will be payable.

ICICI Bank UK – HiSAVE Fixed Rate

If savers are prepared to commit funds for three years then ICICI Bank UK is offering 4.70pc on its HiSAVE Fixed Rate account. Savers can invest upwards of £1,000 into the online operated account, with a monthly interest option also available. Once opened, further additions and earlier access is not permitted.

Find the best savings account for you - compare medium 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 Any products featured may be withdrawn by their provider or changed at any time.

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