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Product focus: short term fixed rate bonds

Product focus: short term fixed rate bonds

Category: Savings

Updated: 21/01/2010
First Published: 23/11/2009

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 It is now over 6 months old so the content may be out of date.
Short term fixed rate bonds are best suited to savers who are willing to lock cash away for a set period of time.

These types of account tend to offer higher rates than other accounts, such as easy access, although savers should be aware they may not be able to add to the capital once the initial deposit has been made and also that early access is prohibited.

Here are the current top three one year fixed rate bond accounts.

State Bank of India – High Return Fixed Deposit

This one year bond pays a rate of 3.75 per cent on the anniversary of the account opening. A monthly interest option is also available. Savers must invest a minimum of £1,000. Early access and further additions are not allowed. Interest can only be paid away on balances over £50,000. The account can be operated by savers aged 18 and over, either in branch or by post. Account holders must open or have an existing State of India savings or current account.

Post Office – Growth Bond Issue 10


This account, run by the Bank of Ireland, pays a rate of 3.70 per cent on maturity. Savers can invest between £500 and £1 million. The term of the bond is for one year. Interest on deposits of £50,000 or over is paid in gross. Early access is allowed on account closure, subject to a breakage charge and further additions are not allowed. The account can be operated in branch, by post or telephone or online. Savers aged 16 and over, although it can be opened by an adult for a child.

Julian Hodge Bank – Capital Millennium Bond

This one year bond pays a rate of 3.70 per cent on maturity. A monthly interest option is also available at a lower rate of 3.64 per cent. Savers can invest between £1,000 and £1 million. Early access and further additions are not allowed. The account is open to savers of all ages, but can only be operated by post.

Find the best savings account 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 Any products featured may be withdrawn by their provider or changed at any time.

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