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Product focus: Short term bonds

Product focus: Short term bonds

Category: Savings

Updated: 21/04/2010
First Published: 21/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers wishing to lock funds away for a short while and receive a guaranteed return on their savings may be best suited to short term bonds.

Early access to funds is often prohibited, although some providers do allow subject to penalty such as loss of interest.

Here are the current top two year fixed rate bond accounts.

ICICI Bank UK – HiSAVE Fixed Rate Account

This account pays 4.10% on its anniversary. A monthly interest option is available at 4.03%. Savers can invest a minimum deposit of £1,000 although there is no maximum limit. Early access and further additions are not allowed. A HiSAVE Savings Account will automatically open for administration of maturity proceeds. The account can be operated online only by savers aged 18 and over.

Progressive Building Society – Limited Issue Two Year Fixed Term Bond

Issue 72
Progressive Building Society's two year bond pays an annual rate of 3.75%. Savers can invest between £500 and £1 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 in branch and by post.

Bank of Cyprus UK – Bank of Cyprus UK Bond 91

This bond pays 3.70% on its anniversary. Savers can invest between £1 and £10 million and further additions are not allowed. Early access is also not permitted. Interest is paid in gross on balances over £50,000. The account can be operated in branch, by post, telephone or online by savers of all ages.

Find the best savings accounts for you - Compare 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 Any products featured may be withdrawn by their provider or changed at any time.

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