Many experts are predicting a rise in interest rates around the end of 2011 and 2012, so a short term savings bond might be the place to keep your money until then.
The Bank of England is to announce its monthly decision on the base rate tomorrow, but it seems highly unlikely that the measure will move from its current 0.5% level.
Those confident that the any rise is still some way off should be looking to lock their funds away in an account that offers a competitive rate over a relatively timeframe. Here is a selection of some of the best short term saving rates available at present.
Post Office - Growth Bond Issue 13
This bond pays a rate of 2.65% on maturity. Savers can invest between £500 and £1m. Early access is allowed although will be subject to a breakage fee. Further additions to this bond will not be permitted. This is available to savers of all ages and can be operated by post, telephone or online. Check out our other Post Office savings products
AA - Internet 23 Month Fixed Rate
This account from the AA pays a rate of 3.35% on its anniversary. Monthly interest option is also available at 3.30%. Savers can invest between £1 and £5m, and further addition can be made whilst the issue remains open.No early access is allowed. This is available to anyone aged 18 years and over and can be operated by post only.
Britannia - 2 Year Fixed Rate Bond Issue 59
A rate of 3.31% will be paid on this bonds anniversary. Monthly interest is available at 3.25%. Savers can invest between £1000 and £1m. Further additions are not allowed. Early access is also not permitted. The account is available to all ages and can be operated in branch or by post.
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 Any products featured may be withdrawn by their provider or changed at any time.
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