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Product focus: One year fixed rate bonds

Product focus: One year fixed rate bonds

Category: Savings

Updated: 22/01/2010
First Published: 30/11/2009

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 It is now over 6 months old so the content may be out of date.

National Savings and Investments' recent market leading bonds were pulled in record time, leaving many savers unable to take advantage of the top rates.

If savers are looking for a suitable alternative for a one year commitment from a household name, they could consider the following:

Post Office – Growth Bond Issue 10

The Growth Bond from the Post Office is currently paying 3.70%. Savers can invest between £500 and £1 million into the bond, but further additions are not allowed after the initial investment. The account can be operated in branch, online, by post or telephone and is run by Bank of Ireland. Access is available during the one year term on closure only and will be subject to a breakage penalty.

Cheltenham & Gloucester – One Year Fixed Rate Bond

Cheltenham & Gloucester is paying 3.50% on its one year bond, which matures on 15th December 2010. Savers looking for a regular income can opt for interest to be paid monthly. Savers can invest between £100 and £3 million into the bond, with further additions permitted whilst the issue remains open. Access to funds is available during the term, but all withdrawals will be subject to a loss of 120 days' interest.

Northern Rock – Fixed Rate Bond

The Fixed Rate Bond from Northern Rock pays 3.40%, or 3.10% for savers looking for interest to be paid monthly. The account is operated in branch or by post and savers can invest up to £2 million. Once the account is opened, further additions are not permitted and no access is allowed until the bond matures on 1st December 2010.



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 Any products featured may be withdrawn by their provider or changed at any time.

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