Minutes from the Monetary Policy Committee's meeting two weeks ago have shown that only one of the nine members voted in favour of an interest rate increase.
Many experts believe it will be a least another year until we see members voting unanimously for an increase in bank base rate. Savers looking to set aside money in the meantime may be interested in a short term bond.
Here is a selection of the current best short term bonds offered by familiar high street institutions.
Santander – 15 Month Fixed Rate Bond
This bond pays an annual rate of 3.00% on 1st December 2011. A monthly interest option is available at 2.96%. Savers can invest between £1 and £2 million. Early access and further additions are not allowed. The account is available to savers of all ages and can be operated in branch, by post, telephone or online.
Northern Rock – Fixed Rate Bond Issue 405
This account pays 3.00% on 1st September 2011. A monthly interest option is also available at 2.70%. Investments range 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.
Britannia – 1 Year Fixed Rate Bond Issue 195
This one year bond pays 2.81% on maturity. A monthly interest option is available at a lower rate of 2.78%. Savers can invest between £1,000 and £1 million. Early access and further additions are not permitted. Savers of all ages can operate the account either in branch or by post.
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 Any products featured may be withdrawn by their provider or changed at any time.
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