Fixed rate bonds are seen by many savers as a good way to achieve a guaranteed rate of return. Savers who are looking to open one of these accounts must be willing to lock their money away for the duration of the term, with early access being subject to penalties such as loss of interest or even account closure. Long term fixed rate bonds can often pay some of the best savings rates in the market, although their short term counterparts also pay some good returns. Here is a selection of the current best two year fixed rate bonds.
Post Office – Growth Bond Issue 13
The Post Office's two year bond pays 3.40% on its anniversary. Savers can invest between £500 and £1m, but further additions are not allowed. Early access is allowed on closure only, subject to a breakage fee, while the account can be operated by savers of all ages, by post, telephone or online.
Yorkshire Building Society – Fixed Rate Bond
This account pays an annual rate of 3.40%, while a monthly interest option is also available at 3.35%. Savers can invest between £1,000 and £2m and further additions can be made whilst the issue remains open. Early access is not permitted, while upon maturity, the rate reverts to the Two Year Fixed Rate Rollover Bond, which allows savers to access funds for the first month. The account can be operated in branch or by post and is available to savers aged 12 and over. Accounts can be opened in trust for younger savers up to the age of 11.
AA – 23 Month Fixed Rate Savings
This deal from the AA pays 3.35% on its anniversary, while a monthly interest option is also available at 3.30%. Investments can range between £1 and £5m and further additions can be made whilst the issue remains open. Early access is not allowed, but the account is available to savers aged 18 and over and can be operated by post only.
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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 Any products featured may be withdrawn by their provider or changed at any time.
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