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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: 26/08/2009

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 It is now over 6 months old so the content may be out of date.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 customers who are prepared to lock their cash away, but over a shorter period of time such as two years.

Many savings bonds only allow one lump sum investment at the beginning of the term, while earlier access tends to result in a penalty such as loss of interest. Here is a summary of the best short-term fixed rate bonds currently available.

West Bromwich Building Society – E Bond 29

This one year fixed deal pays a rate of 3.90 per cent on maturity. Savers can invest from £5,000 to £1 million, although further additions and early access are not allowed. This deal is available online only to savers aged 18 or over. A monthly interest option is available which pays a lower rate of 3.83 per cent.

Post Office – 1 Year Growth Bond Issue 9

The Post Office's one year fixed rate bond pays a rate of 3.85 per cent on maturity. The deal can be opened by an adult for their child, although minimum age for account holders is 16. Investments range from £500 to £1 million, while interest on deposits of £50,000 or over is paid as gross. Early access and further additions are not allowed. This account can be operated in branch, by post and telephone and online.

Chelsea Building Society – Summer Bond (no access) 1 Year Option (1st issue)

This product pays a rate of 3.80 per cent. Investments range from £1,00 to £500,000. Early access is not allowed, although further additions are permitted while the issue is open. The account can be operated, by savers aged 18 and over, in branch and by post. A monthly interest option is available at a lower rate of 3.74 per cent.

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 Any products featured may be withdrawn by their provider or changed at any time.

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