Product focus: Short term fixed rate bonds - Savings - News - Moneyfacts


Product focus: Short term fixed rate bonds

Product focus: Short term fixed rate bonds

Category: Savings

Updated: 21/01/2010
First Published: 12/10/2009

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 It is now over 6 months old so the content may be out of date.

There remains plenty of choice for savers who are looking to invest their money in a fixed short-term bond. Abbey, Alliance & Leicester and Bradford & Bingley, who are all part of the Santander Group, recently launched the Super Bond Issue 12, which pays a rate of 5.00pc for investments under £249,999, while a host of other providers offer good deals at present. Here are the current top three short-term fixed rate bonds.

Abbey – Super Bond Issue 12

The rate paid for this account is dependent on the deposits paid by the saver. For investments of between £1 and £249,999 the rate of return is 5.00pc, while for deposits of £250,000 up to £2m a higher rate of 6.00pc is paid. A monthly interest option is also available with the same investment tiers, although the rates paid are 4.89pc and 5.84pc respectively. Early access is allowed, although is only penalty free on account closure. Savers must hold or open an Abbey savings account and invest the same amount in a qualifying Abbey investment product. The account can be operated in branch only by savers aged 18 and over.

Bank of Cyprus UK – Bank of Cyprus UK Bond 58

This fifteen month bond account pays a rate of 4.07pc. The minimum deposit required is £1 and no maximum investment is needed, although interest is paid as gross on balances over £50,000. 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 and telephone and online.

State of India Bank – Hi Return Fixed Deposit

This deal pays a rate of 3.75pc on the anniversary date for investments of £1,000 or more. A monthly interest option is available and pays 3.68pc for deposits of £50,000 or over. No early access or further additions are allowed. Savers must hold or open a State of India Bank current or savings account and be aged 18 and over. The account can be operated 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 Any products featured may be withdrawn by their provider or changed at any time.

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