No one knows for certain when the Bank of England will start raising the bank base rate, so many savers are reluctant to lock their money up for long periods of time, in accounts that may be uncompetitive if base rate rises sharply. With the most attractive rates being offered on longer term deals, savers can still get a competitive rate of interest for up to a one year commitment.
Post Office – One Year Growth Bond
The Post Office is currently offering the highest rate on the market for a one year bond, paying 3.85pc. Savers can invest between £500 and £1m into the account, which can be operated in branch, online, by post or telephone. Once opened, further additions and earlier access is not permitted.
Chelsea Building Society – One Year Summer Bond
Chelsea Building Society is offering savers and option of two one year bonds. The first is paying 3.80pc, but no access is available during the term. The second pays 3.75pc, but access to funds is available during the term, subject to 180 days' loss of interest. Savers can invest between £1,000 and £500,000 into these bonds.
Chelsea Building Society – Summer Bond 2009 (Short Term)
Chelsea Building Society is also offering the highest rate for savers looking to commit funds for just six months. Its Summer Bond 2009 pays 3.70pc on investments of between £1,000 and £500,000. Further additions can be made into the bond whilst the issue remains open. The bond matures on 22 March 2010 and access is not permitted during the term.
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 Any products featured may be withdrawn by their provider or changed at any time.
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