Savers who wish to lock funds away for a set period and receive a guaranteed income from their savings, may be suited to a fixed rate bond, although it is worth remembering that these accounts sometimes require a large initial deposit. Here is a run down of the current top three short term bonds requiring a deposit below £1,000.
Derbyshire Building Society – Fixed Rate Bond Issue 187
This account pays a rate of 3.75% on maturity. A monthly interest option is available at 3.65%. Savers can invest between £100 and £1m. No earlier access is allowed, although further additions can be made while the issue is open. The account can be operated in branch, by post or online by savers of all ages.
Bank of Cyprus (UK) – Bank of Cyprus UK Bond 71
This account pays a rate of 3.40% on maturity. Investments range between £1 and £10m, although savers need to remember that a minimum deposit of £50,000 is required for the monthly interest option. Interest is paid in gross for balances over £50,000. Earlier access and further additions are not allowed. The account can be operated in branch, by post, telephone or online by savers of all ages.
Post Office – Growth Bond Issue 11
This account pays a rate of 3.30% on maturity. Investments range between £500 and £1m and no further additions are allowed. Early access is allowed on closure only, subject to a breakage charge. The account can be operated in branch, by post, telephone or online by savers aged 16 and over and can be opened by an adult for a child.
Compare short term fixed rate bonds
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