Many economists will be expecting the Monetary Policy Committee to announce a 'hold' status on interest rates later this week.
Just exactly when interest rates will begin to rise remains to be seen. Some have speculated that it will occur early during 2011, while others believe it will be much later, around the end of 2011.
Cautious savers who want the reassurance of a guaranteed return may be best suited a short term fixed rate bond.
Here is a selection of the current best one year bonds.
Northern Rock – Fixed Rate Bond Issue 398
This account pays an annual rate of 3.00%. A monthly interest option is available at 2.70%. Savers can invest between £1 and £2 million and further additions can be made whilst the issue is open. Early access is not allowed. The account is available to savers of all ages and can be operated by post only. Apply Now
Santander – 1 Year Fixed Rate Bond
Santander's one year bond pays 2.80% on maturity. A monthly interest option is available at 2.76%. Savers can invest between £1 and £2 million. Further additions and early access are not allowed. The account can be operated in branch, by telephone and online by savers of all ages. Apply Now
Dunfermline Building Society – Fixed Rate Bond Issue 81
This account pays an annual rate of 2.75%. A monthly interest option is also available at 2.72%. Savers can invest between £100 and £1 million and further additions can be made whilst the issue remains open. Early access is not allowed. The account can be operated in branch, by post or telephone by savers aged 16 and over.
Find the best savings accounts for you - Compare fixed rate bonds
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