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Product focus: short term bonds

Product focus: short term bonds

Category: Savings

Updated: 05/05/2010
First Published: 05/05/2010

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 It is now over 6 months old so the content may be out of date.

The uncertain economic environment means that most savers are only looking to tie their money up for shorter periods of times.

Despite providers' best efforts, the majority of savers are not being tempted into bonds requiring a five year commitment.

While rates have fallen more heavily on shorter term deals, savers can still achieve up to six times the bank rate.

Norwich & Peterborough Building Society – 1 Year E-Bond

The E-Bond from Norwich & Peterborough Building Society pays 3.05% and is open to customers bringing new money to the provider. Savers can invest between £1,000 and £1 million into the account, which is operated online. Once opened, further additions and earlier access are not permitted.

Julian Hodge Bank – Capital Millennium Bond

The postal based Capital Millennium Bond from Julian Hodge Bank pays 3.05%. For savers looking for a regular income, a monthly interest version of the bond is available. Savers can invest between £1,000 and £1 million into the bond, but further additions and earlier access are not available during the one year term.

Post Office – Growth Bond Issue 12

The Post Office has just launched a new issue of its Growth Bond paying 3.00%. Savers can invest between £500 and £1 million into the bond, which is run by the Bank of Ireland. Once opened, further additions and earlier access are not permitted into the bond, which can be operated online, by post or telephone.

Find the best savings accounts for you - Compare short term savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.

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