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Product focus: Short term fixed rate bonds

Product focus: Short term fixed rate bonds

Category: Savings

Updated: 19/05/2010
First Published: 19/05/2010

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 It is now over 6 months old so the content may be out of date.

A further increase in inflation this month to 3.7pc and an emergency Budget scheduled for 22 June will have left many savers wondering what the future holds. With interest rates predicted to rise in the next few months, short term fixed rate bonds are particularly popular with cautious savers. Here is a selection of the current best six month bonds.

Norwich & Peterborough Building Society – Fixed Rate Bond

This six month bond pays 2.48pc on maturity. A monthly interest option is available at 2.47pc. Savers can invest between £1,000 and £1m, although further additions are not allowed and it must be new money to the institution. Early access is also not permitted. The account is available to savers of all ages and can be operated in branch, by post or online.

Shepshed Building Society – 6 Month Fixed Rate Bond Issue 6

This six month bond pays an annual rate of 2.25pc. Investments can range between £500 and £100,000, although the minimum deposit for non-locals is £5,000. Further additions and early access is not permitted. The account is available to savers of all ages and can be operated in branch and by post.

Nationwide Building Society – 6 Month Fixed Rate Bond

This account pays 2.00pc on maturity, while a monthly interest option is also available at 1.95pc. Savers can invest between £1 and £2m, although further additions are not allowed. Early access to funds is permitted on closure only, subject to 90 days loss of interest. The account, fixed for six months, can only be operated in branch but is open to savers of all ages.

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 Any products featured may be withdrawn by their provider or changed at any time.

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