It remains to be seen when interest rates will start to increase again, and as a result, many cautious savers are placing their savings into short term bonds. Theoretically, the longer the bond period is, the higher the rate of return will be, but there are some good products available for those looking to lock their cash away for just twelve months. Here are the current top three.
State Bank of India – Hi Return Fixed Deposit
This account pays a rate of 3.75% on its anniversary. Savers need to invest a minimum of £1,000, although there is no maximum deposit amount. A monthly interest option is also available for savers with a minimum investment of £50,000. No early access or further additions are allowed. Customers must open or have an existing State Bank of India current or savings account. The account can be operated in branch or by post by savers aged 18 and over.
Bank of Cyprus UK – Bank of Cyprus UK Bond 66
This one year bond launched recently by Bank of Cyprus UK, pays a rate of 3.55% on maturity. Savers need to invest a minimum of £1, although there is no maximum deposit amount. A monthly interest option is also available with a much higher minimum deposit of £50,000. Interest is paid in gross for balances over £50,000. Early access and further additions are not permitted. The account can be operated by savers of all ages in branch, by post and telephone and online.
Julian Hodge Bank – Capital Millennium Bond
The Capital Millennium Bond pays a rate of 3.55% on maturity. A monthly interest option is also available at 3.49%. Savers can invest between £1,000 to £1m. Early access and further additions are not allowed. The account can only be operated by post by savers of all ages.
Compare short 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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.