Most savers prefer a short term commitment, particularly in the current climate when no one can predict when bank base rate will rise. However, in this low interest rate environment, many savers are being tempted by the higher rates on longer term bonds. For some, committing funds for five years is a step too far, but two and three year bonds are still likely to appeal.
Stroud & Swindon Building Society – Fixed Rate Bond Issue 91
The highest rate for a two year commitment is being offered by Stroud & Swindon Building Society, who are paying 3.70%. Savers can invest up to £250,000 into the bond, with further additions allowed whilst the bond remains open. The bond is operated in branch, by post or telephone, but no access is permitted during the term.
Birmingham Midshires – Internet 2 Year Fixed Rate
Savers who like to manage their account online are being offered a rate of 3.60% by Birmingham Midshires. Savers can invest up to £10m into the account, with further additions permitted whilst the issue remains open. Savers can access funds during the two year term, but all withdrawals will be subject to a loss of 180 days' interest.
AA – 3 Year Fixed Rate
Savers prepared to commit funds for three years are being offered a market leading rate of 4.10% by the AA. Up to £5m can be invested in the bond, with a monthly interest option available for savers looking to take a regular income. Further additions to the bond can be made whilst the issue remains open. Access during the three year term is available, subject to a loss of 270 days' interest.
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