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Top 5 cracking fixed rate bonds

Top 5 cracking fixed rate bonds

Category: Savings

Updated: 26/02/2013
First Published: 26/02/2013

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 It is now over 6 months old so the content may be out of date.

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:

1 year fixed rate bonds:

The Co-operative Bank
The Co-operative Bank
Fixed Term Deposit


2.31% AER/Gross
  • Minimum investment £1,000
  • Maximum investment £1 million
  • Monthly interest paid at 2.30% (AER) and 2.28% (gross)
  • Early access and further additions not permitted
    Can be operated in branch, by post, telephone and online

See best buys

Penny saysPenny 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."



2 year fixed rate bonds:

Islamic Bank of Britain
Islamic Bank of Britain
Sharia'a Compliant Fixed Term Deposit

2.83% AER/2.80%Gross
  • Minimum investment £1,000
  • Early access and further additions not permitted
  • Can be operated in branch, by post, telephone and online

See best buys

Penny saysPenny 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."


3 year fixed rate bonds:

Britannia
Britannia
3 Year Fixed Rate Bond Issue 51

3.00% AER/Gross
  • Minimum investment £1,000
  • Maximum investment £1 million
  • Monthly interest paid at 2.96% (AER) and 3.00% (gross)
  • Early access and further additions not permitted
  • Can be operated in branch or by post

See best buys

Penny saysPenny 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."



4 year fixed rate bonds:

Sainsbury's Bank
Sainsbury's Bank
Fixed Rate Saver

2.60% AER/Gross
  • Minimum investment £5,000
  • Maximum investment £50,000
  • Monthly interest paid at 2.60%
  • Early access and further additions not permitted
  • Can be operated by telephone or online

See best buys

Penny saysPenny 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."



5 year fixed rate bonds:

FirstSave
FirstSave
5 Year Fixed Rate
Bond 1st Issue


3.05% AER/Gross
  • Minimum investment £1,000 (£5,000 for monthly interest)
  • Maximum investment £2 million
  • Monthly interest paid at 3.05% (AER) and 3.01% (gross)
  • Early access and further additions not permitted
  • Can be operated online only

See best buys

Penny saysPenny 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

What next?

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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