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Product focus: Short term fixed rate bonds

Product focus: Short term fixed rate bonds

Category: Savings

Updated: 04/01/2010
First Published: 02/12/2009

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 It is now over 6 months old so the content may be out of date.

As financial uncertainty looks set to continue well into next year, short term fixed rate bonds are proving to be a popular choice for many savers taking a cautious approach with their investments. Here are the current top three short term fixed rate bond accounts.

Abbey – Super Bond Issue 14

The rate for this account is determined by the deposit amount. For investments of between £1 and £249,999 a rate of 5.00pc is paid on maturity, while savers with deposits of between £250,000 and £2m will receive a rate of 6.00pc. A monthly interest option is also available. Savers must hold or open an Abbey savings account and invest an equal amount in a qualifying Abbey investment product. Further additions are not allowed and earlier access is penalty free on closure only. The account can be operated in branch only by savers aged 18 and over.

Melton Mowbray Building Society – Online Christmas Bond

This new festively named product from Melton Mowbray Building Society pays an annual rate of 4.00pc. Savers must invest between £1,000 and £250,000. No further additions are allowed, although earlier access is subject to 90 days' loss of interest. Withdrawals up to a maximum of £10,000 a day must be made via a nominated account. Funds must be new money to the institution. As the name suggests, the account can only be operated online, by savers aged 16 and over.

Bank of Cyprus UK - Bank of Cyprus UK Bond 67

This fifteen month bond pays a rate of 3.87pc on maturity. Savers can invest a minimum of just £1, while there is no maximum limit. 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 or telephone and online. There is no age restriction for this product.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
 
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