Savings accounts with fixed rates can offer savers very competitive returns for locking their money away for a set period of time.
If you choose to invest in a fixed-rate bond, it is always wise to keep a note of when it is due to mature. Doing so leaves plenty of time to transfer money into another competitive paying account, as providers may automatically re-invest money into a lesser paying bond or variable rate deal after maturity.
Here are the current top fixed-rate accounts for each term:
The Co-operative Bank Fixed Term Deposit
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Penny says… "Sitting at the top of the one-year bond market is this highly competitive deal available to savers with deposits of £1,000 and over.
"Launched last week, this bond also offers a monthly interest option to investors who may want to use their savings to supplement their income."
Islamic Bank of Britain Sharia'a Compliant Fixed Term Deposit
Penny says… "This twenty-four month bond offers an appealing savings package to people of all faiths.
"Paying a quarterly rate of 2.83% (AER) and 2.80% (gross), this account does not allow early access to funds, so savers must be prepared to lock their money away for the duration of the term."
Britannia 3 Year Fixed Rate Bond Issue 51
Penny says… "Heading up the medium-term bond market is this attractive deal from Britannia, paying a market-leading rate on its anniversary and on a monthly basis.
"The account can be operated in branch or by post, although the initial opening process can also be made by telephone or online."
Sainsbury's Bank Fixed Rate Saver
Penny says… "This four-year bond from Sainsbury's Bank pays a very competitive rate for savers with larger investments of £5,000.
"As with many fixed-rate products, savers must be aware that they will not be able to access their money whilst the issue is still running."
FirstSave 5 Year Fixed Rate Bond 1st Issue
Penny says… "Savers looking to tie up their money over a five-year period should find this online deal from FirstSave appealing.
"Those looking to receive interest on a monthly basis must be aware that a higher minimum deposit of £5,000 is required."
Information & Rates correct as at: 26/02/2013
Compare the best savings rates 1 year fixed rate bonds 2 year fixed rate bonds 3 year fixed rate bonds 4 & 5 year fixed rate bonds
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 Any products featured may be withdrawn by their provider or changed at any time.
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